IAMC News Briefs - Week of May 23, 2022
By John Salustri
MARCUS & MILLICHAP—The largest port in the world—Shanghai--remains shuttered. It now takes 80 days, as opposed to the pre-pandemic 48 days, to get goods from Asia, and the costs have risen 10-fold. So says Marcus & Millichap’s John Chang in a recent video. But US manufacturers are implementing short term solutions such as increasing order quantities and warehousing goods locally to defer delays. But long-term solutions are needed, such as near-shoring and re-shoring.
https://www.marcusmillichap.com/research/videos/how-supply-chain-issues-impact-cre-investors
COMMERCIAL OBSERVER—Sale prices on industrial assets continue to outstrip 2021 numbers. With national price tags hovering around $135 per square foot, industrial dispositions total $19 billion to date, a 20 percent increase over 2021’s numbers. And, despite some 640 billion square feet of new product in the construction pipeline, national rents hovered around $6.47 a foot while vacancies held firm at five percent in April of this year.
https://commercialobserver.com/2022/05/national-industrial-real-estate-prices-climb-20-percent-sales-nearing-19b-in-2022/?utm_campaign=daily-roundup&utm_content=2022-25-05-27823464&utm_source=Sailthru&utm_medium=email&utm_term=CO%20Daily%20Newsletter
GLOBEST.COM—Amazon is reportedly facing a surfeit of warehouse space and might be taking measures to correct the overload. “The surfeit of space could far exceed 10 million square feet,” according to report sources, and “it could be triple that.” By the close of 2021, the e-tailer had leased more than 370 million square feet of North American fulfillment, data center and other assets, and owned in excess of 387 million feet.
https://www.globest.com/2022/05/23/amazon-reportedly-ready-to-dump-excess-warehouse-space/
COMMERCIAL PROPERTY EXECUTIVE—A 445,000-square-foot asset with 36-foot clear heights is the first asset to break ground in Hines’ planned Atlanta industrial park. When the construction dust clears, there will be three assets in what has been dubbed Thurman Tanner Logistics Park in the northeast sector of the city. Building B will top 265,000 feet and Building C will pace out to 110,000 feet. While no completion timelines were released for the latter two facilities, Building A is set for completion in Q4.
https://www.commercialsearch.com/news/hines-plans-industrial-park-in-northeast-atlanta/