Who speaks for the corporate tenant when a new distribution center is planned for a local community? The short answer is: Everyone, from the economic development corporation (EDC) and the community leaders to the corporation itself. 

But this collaboration assumes that there’s been adequate homework by the appointed site selectors and service providers to ensure–as much as possible–that the local community is indeed the right fit for the project at hand. 

“We have to accept what we’re dealing with and do the best we can.” Thus, Dmitry Dukhan wraps up the essential truth of the current inflationary economic environment. The Medline Industries VP of Real Estate, Facilities and Security takes a sort of laissez faire approach to the issue, categorizing it as “one of those geopolitical issues I have no control over.”

The leasing landscape is changing. Not so much in the transaction itself as much as what comes after (in the reporting) and, as a result, what comes before (in the preparation to remain in compliance). For the majority of industrial assets, the triple net deal is still the industry darling. How we report those deals, however, is now transitioning, thanks to the Financial Accounting Standards Board (FASB). And that implies a new measure of caution in how we approach certain deals and how they turn up on our books. We’ll get back to that shortly. 

The Industrial market nationally “continues to be the darling of commercial real estate,” reports JLL in its Q2 2021 Outlook. “On the leasing front, things are moving so quickly that buildings are not sitting idle or vacant for long. Availability in the market is extremely tight, with all time low vacancies and new market-high rents.”

https://www.us.jll.com/en/trends-and-insights/research/industrial-market-statistics-trends

Compared to the current woes of the office or retail sectors, that’s good news for landlords and investors. For corporate occupiers, well, not so much.