IAMC News Briefs—Week of July 11, 2022
By John Salustri
CUSHMAN & WAKEFIELD—Demand outpacing supply remains as much a fact in industrial real estate as it does in the delivery of goods. And not surprisingly, asking rents reflect the imbalance. According to Cushman and Wakefield, rents jumped 19 percent in Q2 over the same time last year. On the supply side, long-delated construction is finally coming to market, with new facilities totaling 193.8 million square feet year-to-date. That’s an increase of 27.5 percent over midyear 2021. And there’s more to come. The construction pipeline hit ‘”an unprecedented” 699 million square feet in Q2. Turning to the demand side, the firm tracks 236.3 million square feet of absorption for the first half of 2022, making Q2 the seventh consecutive quarter of supply shortfalls.
https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-industrial-marketbeat?utm_source=sfmc_gmc&utm_medium=email&utm_campaign=GLBL_Newsletter-Weekly-Digest_Email_7_12_2022&utm_term=https%3a%2f%2fwww.cushmanwakefield.com%2fen%2funited-states%2finsights%2fus-marketbeats%2fus-industrial-marketbeat&utm_id=239081&sfmc_id=20558719
COMMERCIAL OBSERVOR—A 158,800-square-foot facility in Los Angeles, currently leased to Anheuser-Busch, is off the market after its recent sale. The cold storage warehouse, which traded for $85 million, or $535 per square foot, is being called among the priciest SoCal deals so far this year. Thor Equities bought the facility from a JV of Staley Point Capital and Bain Capital Real Estate. How hot is the local market? The same facility sold just six months ago for $35 million, while KKR just broke news of its $481-per-foot warehouse deal in the Inland Empire.
https://commercialobserver.com/2022/07/la-anheuser-busch-budweiser-thor-equities-industrial/?utm_campaign=daily-roundup&utm_content=2022-13-07-28354008&utm_source=Sailthru&utm_medium=email&utm_term=CO%20Daily%20Newsletter
COMMERCIAL PROPERTY EXECUTIVE—Liberty Development Partners has big plans for its newly acquired Gulf Inland Logistics Park and CMC Railroad in Dayton, Texas. The firm envisions 14.7 million square feet of master-planned manufacturing, distribution and transportation development for the sprawling, 1,158-acre site. The timing and location couldn’t be better. Situated 100 miles from four Texas ports, the new development will capitalize on Texas port development initiatives. “During the first week of June, the Port of Houston Authority announced a $1 billion project to deepen the Houston Ship Channel and increase the capacity of the port,” states a Savills report.
https://www.commercialsearch.com/news/houston-area-1158-acre-logistics-park-trades/
MARCUS & MILLICHAP—It should come as no surprise that hiring is frantic now, with employers adding some 372,000 personnel to its payrolls in June. Marcus & Millichap reports that “robust employment” is the key, and specific sectors are already ahead of pre-pandemic staffing levels. Transportation and warehousing are listed among those market leaders, adding 759,000 positions since February of 2020. The bump reflects “elevated demand for distribution centers and warehouses.” Nevertheless, 1.9 open positions remain per job seeker, a condition that may lead the Federal Reserve to prioritizing inflation over employment growth,” says the firm.
https://www.marcusmillichap.com/research/research-brief/2022/07/research-brief-july-employment