IAMC News Briefs—Week of June 26, 2023
By John Salustri
SUPPLY CHAIN DIVE—Billing it as its largest fulfillment center to date, Walmart this month opened its 2.2-million-square-foot operation in McCordsville, IN. It’s all part of the mega-retailer’s strategy to open four such centers over the next three years, synergizing people (in career-enhancing high-tech jobs), robotics and artificial intelligence. When all four centers are online, the firm predicts the ability to reach 95% of the US population with next- or two-day shipping. “With more customers shopping online, we’re leveraging state-of-the-art technology to increase speed of delivery, all while creating tech-empowered career opportunities for our associates,” says senior vice president of fulfillment network operations Karisa Sprague.
https://www.supplychaindive.com/news/walmart-opens-next-generation-fulfillment-center-indiana/653265/
COMMERCIAL OBSERVER—Fact 1: Office assets are still struggling to gain occupancy post-COVID. Fact 2: Conversions of underperforming offices to multifamily and other uses is a real and growing trend. Fact 3: Industrial has become one of those options. According to Newmark, some 15.2 million square feet of office assets around the country have been converted to industrial use, a 33.7% increase in just two years. A good thing it is too, since industrial vacancies hover at 3.8% as opposed to the office sector’s 18%. Unlike conversions to other types, where an office might strip down to its bones, the majority of these conversions focus on the land beneath the asset, with a relatively small number of assets actually being repurposed.
https://commercialobserver.com/2023/06/office-to-industrial-conversions/?utm_source=sailthru&utm_medium=email&utm_campaign=dailyru&utm_term=2023-21-06-31850503
RE BUSINESS ONLINE—Dermody Properties has set mid-2024 for the ribbon cutting on a planned 214,271-square-foot warehouse in Woolwich Township, NJ. On 14-acres, the asset will offer tenants 40-foot clear heights, two drive-in doors, 39 docks and parking for 169 cars and 19 trailers. Cushman & Wakefield represented the unnamed seller.
https://rebusinessonline.com/dermody-properties-to-develop-214271-sf-industrial-facility-in-woolwich-township-new-jersey/
COMMERCIAL PROPERTY EXECUTIVE—Sportswear giant Adidas has re-upped for 599,152 square feet at its Link Logistics-owned plant in Indianapolis. Known as 8677 Logo Athletic Court, the facility prepares (as its name implies) screen-printed sports apparel with stamps, presses and screen-printing. It also serves as a warehouse and distribution point for the team outfits it makes. Colliers spoke for both the landlord and tenant. Indianapolis boasts nearly 11 million square feet in its industrial pipeline, and one of the nation’s lowest vacancy rates: 2.6%.
https://www.commercialsearch.com/news/adidas-renews-600-ksf-indianapolis-industrial-lease/
IAMC CORNERSTONE—Discount the nation’s seven primary industrial regions, and Houston emerges as Number 1. So says Cushman & Wakefield in a recently released study. With nine deals pacing out to more than 1 million square feet and the preponderance of e-commerce and retailer/wholesaler tenants making those deals, the so-called “Space City” racked up 131.3 million feet in new leasing activity from 2020 through 2022, ranking “either first or second place in all categories excluding primary markets,” says Cushman. Those categories include leasing activity by 3PLs, construction/building suppliers, e-commerce firms, retailers/wholesalers, food and beverage purveyors and manufacturers. For other winners in specific categories, click the link.
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