IAMC News Briefs—Week of February 13, 2023
By John Salustri
W42ST.NYC—If you thought Hell’s Kitchen was simply the setting for old James Cagney flicks, think again. Verizon has filed plans for the construction of a six-story structure at 620 12th Avenue. W42St.nyc, quoting a story originally reported in Crain’s New York Business, states that the communications giant plans to build warehouse and office space on the site, a soon-to-be-demolished abandoned factory.
https://w42st.com/post/west-side-monopoly-new-verizon-building-planned-in-50m-deal/
TRANSPORT DIVE—It’s dubbed the Federal Infrastructure Bank Act of 2023, currently in the House of Representatives, and it’s designed to “help finance work such as transportation projects, ports, electric grid security and broadband connectivity,” according to a congressional press release. The bill, H.R. 490, would create a bank to leverage the power of state and local partners—especially in the private sector--to facilitate infrastructure investment. It was made clear that even the $1.2 trillion earmarked in the Infrastructure Investment and Jobs Act would not be enough to take on all the projects needed. This bill, it is hoped, would open a pathway to additional funding.
https://www.transportdive.com/news/house-bill-aims-to-create-lending-institution-for-infrastructure-projects/642385/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-02-13%20Transport%20Dive%20%5Bissue:48031%5D&utm_term=Transport%20Dive
SUPPLY CHAIN DIVE—Target, Columbia Sportwear and Nestle are just three of some 47 private-sector firms upping their ante in South American sourcing of materials. Target, for instance, has committed to an additional $300 million in spending with vendors in El Salvador, Guatemala and Honduras by next year. The total $950-million program is being coordinated by the Partnership for Central America, a private-public partnership under the auspices of the White House.
https://www.supplychaindive.com/news/retailers-join-950m-commitment-to-central-america-sourcing/642298/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-02-10%20Supply%20Chain%20Dive%20%5Bissue:47985%5D&utm_term=Supply%20Chain%20Dive
GLOBEST.COM—In a move that furthers the nearshoring trend, a 601,000-square-foot multi-tenant warehouse on the Mexican border is now in the hands of LaSalle Investment Management. LaSalle joins the likes of Prologis and Morgan Stanley Real Estate Investing in similar near-border plays. Located in the Otay Mesa submarket of San Diego, the facility, previously owned by Ares Management Real Estate Fund, offers access to the newly completed Route 905 freeway as well as to Tijuana International Airport and a newly planned border crossing. The facility is located within San Diego’s Foreign Trade and HUB zones. Although the purchase price was undisclosed, Ares picked up the asset three year ago for $109 million.
https://www.globest.com/2023/02/13/lasalle-buys-600k-sf-warehouse-near-mexican-border/
JLL—Transaction volume in the second half of last year slowed “notably,” with the expectation that 2023 will see more of the same. So says JLL in its newly released Industrial Outlook. In Q4 of last year alone, volume sunk by 35% over the same period a year before. You can blame the obvious culprit: “The steep interest rate increases continued to lead to re-pricing of transactions during the fourth quarter,” says the report. “Investors continue to grapple with an abnormally high risk premium attributable to uncertainty around the Fed’s next moves and the economic outlook overall.” Meanwhile absorption will hold steady, due in large part to the completion of pre-leased assets under construction. FYI, average per-foot asking rents at year-end were $8.84 for warehouse/distribution spaces, $8.38 for manufacturing and $11.48 for special-purpose facilities.
https://images.hello.jll.com/Web/JLLAmericas/%7B489aaa49-0384-477f-a995-762103d82ad8%7D_q4-2022-industrial-outlook-jll.pdf?utm_medium=email&utm_source=Eloqua&utm_campaign=PERSPECTIVES-INDUSTRIAL-INVESTORS-AMER-National-Industrial-02092023-267575&utm_term=1772458
COMMERCIAL PROPERTY EXECUTIVE—The news here isn’t so much the size of the lease as much as who is doing the leasing. As coworking spreads in the office sector, it was only a matter of time before the concept came to the industrial market. Cubework.com, a national industrial coworking firm, has inked a deal for 916,150 square feet at Heitman Capital Management’s Cotton 303 Logistics Center in the Phoenix suburb of Glendale, AZ. Colliers and Kander Pacific spoke for the landlord and tenant, respectively. Playing off the office model, industrial coworking provides a membership-based, multi-discipline manufacturing workspace.
https://www.commercialsearch.com/news/cubework-signs-916-ksf-lease-in-phoenix/