President Biden’s $2.3 trillion infrastructure plan and its commercial real estate implications were top of mind at the beginning of last month. Industry experts agree that, while there may be some concerns about the plan, it’s going to significantly bolster regional infrastructure projects such as The Gateway rail tunnel project between New York City and New Jersey. Later in the month, Yardi Matrix’s Paul Fiorilla dissected what the proposal would mean for the industry.
As the pandemic accelerated the rise of e-commerce, industrial real estate continues to see upticks in both development and transaction activity. Last month, we sat down with Stream Realty Partners’ Sarah Ozanne to discuss the Dallas industrial boom. Meanwhile, Colliers International’s Chris Sheehan detailed what to expect from the Greater Los Angeles industrial market this year. On that last note, we should mention that the Inland Empire has witnessed a handful of new developments announced in April, as well as big-dollar deals. These include Stirling Development and Prologis’ massive build-to-suit facility, Shopoff Realty Investments’ 1.8 million-square-foot project and CalSTRS’ acquisition of an 11-building industrial portfolio.
But the industrial market’s boom has not yet reached its peak, with AIG’s real estate investment arm purchasing an 8.6 million-square-foot portfolio in a record $1 billion deal. And one area of the industry that is expected to see a rise in demand is the urban micro-fulfillment centers sector, which we’ll continue to keep an eye on. Kroger is a case in point, as the grocery giant will open its first automated Customer Fulfillment Center near Cincinnati, with additional facilities set to debut throughout the country.
Another sector further bolstered by the COVID-19 health crisis is the life sciences industry. This April, IQHQ and Meredith Management have kicked off their Fenway Center project, a $1 billion campus in Boston. Oxford Properties Group purchased a 402,700-square-foot asset at the boundary with Emeryville and Oakland, Calif., converting part of the property to life sciences and lab infrastructure. What’s more, BioMed Realty is set to expand its Emeryville Center of Innovation campus with the addition of 265,000 square feet.
Here are CPE’s must-reads for last month: