IAMC News Briefs—Week of January 16, 2023
By John Salustri
GLOBEST.COM—Prologis has unveiled seven predictions that will shape the industrial landscape for 2023. The predictions, says Chris Caton, the firm’s managing director of Global Strategy and Analytics, are based on “our company’s decades of industry experience and unique insights from our . . . 6,200-plus customers.” Prediction #1: US warehouse starts will drop to a seven-year low, “even as rent growth exceeds 10%.” #2: Barriers to development in California will constrain activity as demand drivers in Texas accelerate, making the Lone Star State number one in net absorption. #3: Nearshoring will push demand in Mexico to record highs. #4: India will become number three in development starts, after the US and China. #5: Build-to-suit rents will reach new highs in the US and EU. #6: E-commerce-driven leasing will hit its second-most-active year. #7: Demand for sustainable warehousing will accelerate rapidly.
https://www.globest.com/2023/01/12/prologis-texas-will-be-the-top-state-for-warehouse-net-absorption-and-other-2023-predictions/
TRANSPORT DIVE—Ali Faghri, a former managing director at Guggenheim Partners, has been named XPO’s chief strategy officer. As a Wall Street auto-industry analyst, he has covered such names as Tesla, CarMax and Uber. “Ali is a seasoned analyst with a thorough understanding of our customer verticals and company-specific strengths,” XPO CEO Mario Harik says. “His expertise will add considerable value as we execute our growth strategy.”
https://www.transportdive.com/news/xpo-chief-strategy-officer-ali-faghri-LTL-c-suite/640498/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-01-17%20Transport%20Dive%20%5Bissue:47334%5D&utm_term=Transport%20Dive
COMMERCIAL OBSERVER—Beacon Wind Land has purchased an Astoria, NY power plant from NRG Energy for $215.5 million. The plant will be converted into an interconnection hub between Consolidated Edison’s electrical grid and Beacon’s 1,230-MW windmill project, dubbed Beacon Wind 1, some 60 miles off the coast of Montauk, NY, scheduled to be operational by 2028. A sign of the energy-advancement times, the Astoria asset is being converted from a fossil fuel plant. The sale awaits a blessing from the New York Public Service Commission. NRG has leased back the land and will keep the plant operational until its scheduled demolition this coming May.
https://commercialobserver.com/2023/01/nrg-energy-astoria-power-plant-offshore-wind-company-216m/?utm_campaign=daily-roundup&utm_content=2023-13-01-30238067&utm_source=Sailthru&utm_medium=email&utm_term=CO%20Daily%20Newsletter
SUPPLY CHAIN DIVE—Q Cells, a Korean manufacturer of solar panels, is bringing its expertise to Georgia with plans to construct a $2.5-billion plant in Bartow County. The plan is to produce 3.3 GW of panel components as well as the completed panels themselves, making it the largest fully integrated panel-making facility in the US when it comes online in 2024. Before that, however, Q Cells is planning a 2.2-GW expansion of its Dalton, GA facility. The solar investment, dubbed by President Joseph Biden as the largest in US history, will, he said, “bring back our supply chains so we aren’t reliant on other countries, lower the cost of clean energy and help us combat the climate crisis.”
https://www.supplychaindive.com/news/hanwha-q-cells-announces-multibillion-dollar-solar-investment-in-georgia/640327/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-01-17%20Supply%20Chain%20Dive%20%5Bissue:47340%5D&utm_term=Supply%20Chain%20Dive
CUSHMAN & WAKEFIELD—It’s been hot in Canada, or so Cushman & Wakefield says about the industrial market in our neighbor to the north. And “hot,” of course, means climbing rental rates. As of 2022’s fourth quarter, the average rent stands at $16.16 per square foot—a 70.8% jump in almost three years. Montreal leads the way, with rents climbing by 94%. Toronto comes in second, with rental-rate growth hitting 82%. But this pace seems unsustainable. “While many markets may continue to see rental rates climb into 2023,” says the firm, “particularly if there is vacancy in brand new builds, which generally commands higher rental rates, it is anticipated that the pace of rental rate growth will slow.” https://www.cushmanwakefield.com/en/canada/insights/canada-marketbeats/industrial-marketbeats?utm_source=sfmc_gmc&utm_medium=email&utm_campaign=GLBL_Newsletter-Weekly-Digest_Email_1_17_2023&utm_term=https%3a%2f%2fwww.cushmanwakefield.com%2fen%2fcanada%2finsights%2fcanada-marketbeats%2findustrial-marketbeats&utm_id=314201&sfmc_id=20558719&utm_campaign=