IAMC News Briefs—Week of October 31, 2022
By John Salustri
THE REAL DEAL—Two-story distribution centers might be rare in the US, but one just scored a major coup. Amazon has inked a deal for 568,500 square feet—the full first floor—at Innovo in the Bronx, NY, the two-story, 20-acre brainchild of Innovo Property Group and Square Mile Capital. The Amazon deal, closed by JLL and designed to help the e-tailer’s last-mile commitments, is said to be New York City’s largest industrial lease this year. Terms were not disclosed.
https://therealdeal.com/2022/10/31/amazon-takes-568k-sf-at-innovo-square-miles-bronx-industrial-complex/
COMMERCIAL OBSERVER—Carefully worded vendor agreements are one major key to construction supply chain agita. For this reason, exceptions worded into stipulated sum and guaranteed maximum price agreements should be carefully considered. Michael Kupin of law firm Duval & Stachenfeld suggests the following: Define beforehand the materials and trades that can lead to a price or schedule change. Mitigate the impact of potential losses through such methods as requiring contractors to start preconstruction early. Align everyone's interests and spread the “wealth” of risk sharing. Finally, verify cost increases.
https://commercialobserver.com/2022/10/supply-chain-construction-solutions/?utm_campaign=daily-roundup&utm_content=2022-28-10-29517243&utm_source=Sailthru&utm_medium=email&utm_term=CO%20Daily%20Newsletter
COMMERCIAL PROPERTY EXECUTIVE—Lincoln Property Co.’s LPC West can now boast a portfolio topping two million square feet. This thanks to the recent acquisition, done in joint venture with New York Life Investors, of a 135,000-square-foot warehouse in Poway, CA. The $35.1-million purchase from Liberty Diversified International was negotiated by Lee & Associates.
https://www.commercialsearch.com/news/lpc-west-expands-san-diego-industrial-footprint/
TRANSPORT DIVE—The driver shortage that has plagued the trucking industry—and therefore the entire industrial marketplace—has eased a bit. But don’t exhale just yet. In 2022, the number of empty driver seats slipped to nearly 78,000, a 4% easing from last year’s record 81,258. But data from the American Trucking Association reveal that the slight dip is expected to be short-lived as both freight demand and an aging driver population continue to grow. In fact, the ongoing shortfall will demand a recruitment of 1.2 million drivers over the next decade.
https://www.transportdive.com/news/truck-driver-shortage-eases-slightly-in-2022-chief-economist-Bob-Costello-ATA-MCE-2022/634854/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-10-31%20Transport%20Dive%20Conference%20%5Bissue:45630%5D&utm_term=Transport%20Dive%20Blast%20List
GLOBEST.COM—Industrial sale prices hit a record in September, says the Commercial Real Estate Exchange (Crexi). A 5.4% hike in price per square foot marked the month. The sector also posted slightly higher leasing rates, coming in at just under 2%. But Crexi also tracks that 20% of new assets came to market without price tags, reflecting an “uncertainty and repricing trends in the broader CRE marketplace. This increase in unpriced listings corresponds with sellers’ awareness of industrial’s continued success while accepting how changing market conditions are impacting buyer sentiment.” Brokers are pushing price discussions to later in the negotiations as a means to “navigate deals to the finish line, which it can in many cases.”
https://www.globest.com/2022/10/31/industrial-notched-biggest-pricing-gains-in-september-according-to-this-index/