IAMC News Briefs—Week of July 25, 2022
By John Salustri
WEALTH MANAGEMENT REAL ESTATE—Terra Worldwide Logistics is eyeing a sale that would value the firm at $1 billion. WMRE, citing a Bloomberg News report, states that the other players are being kept anonymous. But interest is running hot, the report states, and “Other logistics firms and investment funds have expressed preliminary interest in acquiring the business.” Terra officials have not chosen a winner to date. The consolidation of logistics firms has been a growing trend in the wake of the COVID-19 pandemic.
https://www.wealthmanagement.com/industrial/logistics-firm-terra-worldwide-explores-1-billion-sale
TRANSPORT DIVE—The hiring frenzy is over, at least it seems so for Old Dominion. The carrier, which swelled its population to nearly 25,000 (more than 3000 in the past year alone) to handle the pandemic push for deliveries will cool its active hiring unless for specific purposes. Driving the decision was a decrease in less-than-truckload (LTL) volumes. The firm states that it will rely on attrition to normalize its employee base, rather than terminate people.
https://www.transportdive.com/news/old-dominion-pauses-hiring-employees-LTL-volumes-decline/628612/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-08-02%20Transport%20Dive%20%5Bissue:43529%5D&utm_term=Transport%20Dive
URBAN LAND INSTITUTE—The math is simple. The imbalance between demand and supply in the smoking hot industrial market makes spec builds a less risky proposition than they might be ordinarily. “Speculative development projects are popping up all over North America,” says ULI. “The most common factors contributing to this massive shift in approach are e-commerce’s explosion, a move towards onshoring and changes in industry distribution strategies.” The fly in the spec ointment, of course, is land availability, “especially in proximity to urban areas where near-term delivery demand has skyrocketed.”
https://urbanland.uli.org/development-business/whats-driving-the-increase-in-speculative-u-s-industrial-development/?utm_source=realmagnet&utm_medium=email&utm_campaign=HQ%20Urban%20Land%2008%2E01%2E22
REBUSINESS ONLINE—As if to prove the theory of (nearly) risk-free spec, ground has been broken on 1.2 million square feet of spec space in the Indianapolis suburb of Mount Comfort. Core5 Industrial Partners is the developer, which is targeting a Q2 2023 completion. Some 120 dock doors, EV charging stations and office space are all part of the package. JLL is handling the leasing.
https://rebusinessonline.com/core5-breaks-ground-on-1-2-msf-spec-industrial-building-in-metro-indianapolis/#:~:text=%E2%80%94%20Core5%20Industrial%20Partners%20has%20broken,Indianapolis%20market%2C%20according%20to%20Core5
CUSHMAN & WAKWFIELD—Backlogs in the supply chain apparently have both obvious and more subtle repercussions. Among the latter is its upward pressure on inflationary trends, which Cushman & Wakefield puts at as much as 40% of the inflationary total. IAMC members, of course, already know the components of the issue: a dearth of shipping lines with the global economic scale to handle demand; route and port delays, demurrage and detention costs; driver and chassis shortages and rising fuel costs.
https://www.cushmanwakefield.com/en/United-States/Insights/the-math-behind-supply-chain-inflation?utm_source=sfmc_gmc&utm_medium=email&utm_campaign=GLBL_Newsletter-Weekly-Digest_Email_8_2_2022++-+20220728_133733&utm_term=https%3a%2f%2fwww.cushmanwakefield.com%2fen%2fUnited-States%2fInsights%2fthe-math-behind-supply-chain-inflation&utm_id=256471&sfmc_id=20558719