IAMC News Briefs—Week of February 20, 2023
By John Salustri
SUPPLY CHAIN DIVE—TreeHouse Foods is committing $65 million to enhance its supply chain resilience. The funds, half of the private-label food manufacturer’s capital budget, will go for capacity expansion and innovation, according to chief accounting officer Pat O’Donnell. As many IAMC members are facing, “lingering supply chain and service constraints” are the drivers of the enhancement, O’Donnell stated in a recent earnings call.
https://www.supplychaindive.com/news/treehouse-foods-invests-65m-in-supply-chain-Q4/642970/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-02-21%20Supply%20Chain%20Dive%20%5Bissue:48191%5D&utm_term=Supply%20Chain%20Dive
TRANSPORT DIVE—New Jersey, for the fifth consecutive year, has been voted as having the nation’s worst truck bottleneck. The research arm of the American Trucking Association specifically pinpointed Interstate 95 and State Route 4 in Fort Lee, NJ, where traffic speeds at peak hours worsened by 9.9% in 2022. Little wonder. Both roads feed into the George Washington Bridge and New York City. In fairness to the Garden State, California, Georgia and Illinois also had more than one bottleneck in the Top 10.
https://www.transportdive.com/news/American-Transportation-Research-Institute-US-truck-bottlenecks/642522/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-02-15%20Transport%20Dive%20%5Bissue:48112%5D&utm_term=Transport%20Dive
COMMERCIAL OBSERVER—Can warehousing and film production co-exist? You bet, say the folks of Innovo Property Group, which is currently constructing a five-story warehouse/film studio in Long Island City, Queens, NY. Distribution and warehouse functions are planned for the first three floors of the 1-million-square-foot asset, with TV and film production—including four soundstages, set workshops and offices--on the remaining 220,000 feet, all sufficiently sound-insulated. While multistory industrial facilities have not caught on in the metro New York area, the borough’s land-use rules allow for taller industrial buildings. Asking rents are hitting the high $30s per square foot at the site, set for completion in the summer of 2024.
https://commercialobserver.com/2023/02/23-30-borden-avenue-construction-warehouse-long-island-city/?utm_source=Sailthru&utm_medium=Email&utm_campaign=DailyRU&utm_term=2023-22-02-30621023
COMMERCIAL PROPERTY EXECUTIVE—Terreno Realty Corp. has its sights set on developing 121 acres of Countyline Corporate Park, Florida East Coast Industries’ master-planned development in Hialeah, FL. The land purchase alone—for 121 acres--will amount to $173.6 million, and plans are for eight distribution buildings to complement the seven Terreno already owns on the 620-acre campus. Construction is expected to deliver by 2025. https://www.commercialsearch.com/news/terreno-to-develop-491m-miami-project/
JLL—With so much of retail dependent on the distribution market, the sector’s fortunes are important to monitor. In “Grocers Grow Formats Big and Small,” JLL does just that, reporting an unsurprising inflationary headwind. E-commerce tapered in 2022, it says, as shoppers came out of pandemic-driven hiding to shop in person and dine out. Meanwhile, many retailers are establishing their own online platforms and relying less on the Uber Eats and DoorDashes of the world. Finally, after a period of “exuberant expansion,” some so-called ghost kitchens are hitting the skids, for reasons unstated in the report. But, says, JLL, “It has been reported that there was existing skepticism and a lack of appeal of micro-warehouses for retail landlords.”
https://www.us.jll.com/en/trends-and-insights/research/grocery-tracker?utm_medium=email&utm_source=Eloqua&utm_campaign=Admin%20-%20The%20Source%20%28US%29%20-%20February%202023%20-%20Newsletter%20-%20Dynamic%20Content&utm_term=1772458&elqTrackId=4ef25865d41444b99e1d3087e48064df&elq=cece93a352ce414ea5a045a3571e904a&elqaid=147785&elqat=1&elqCampaignId=268164&elqcst=272&elqcsid=2262