Industrial sector performance Inland Empire
Coldwell Banker Commercial posted a blog posting that I thought was very interesting. Specifically, pertaining to the Industrial market.
Industrial sector performance has been very strong in recent quarters as tenant demand and investment activity return to historic norms, signaling a healthy market. At the same time, perhaps more than any other property type, industrial is benefitting from secular change. Demand for warehouse space is being driven by increased global trade and cost advantages that are causing many manufacturers to re-shore production and the continued expansion of e-commerce, which continues to disrupt the traditional interplay between retail and industrial properties.
An important, but often overlooked part of the industrial market is the smaller warehouse (or light industrial) segment, or those under 100,000 square feet. Despite the focus on big-box warehouses, which are now the standard bearer for “class A” industrial space, these assets comprise the largest segment of the market, representing 50% of all rentable stock. Though small warehouses tend to suffer during recessions and thus have underperformed from a NOI growth perspective, they can offer solid revenue since their nominal rents tend to be higher and vacancies lower.
You can read the entire article here…
http://blog.cbcworldwide.com/post/111401487713/the-top-ten-takeaways-2015-inside-real-estate
Fax – (951) 277-6024