In March, we continued to look at the pandemic’s impact on the commercial real estate industry to understand what’s ahead. Fordham University Real Estate Institute’s Hugh Kelly argued that current conditions demand unconventional thinking about what’s next for the economy and the real estate sector.
We set down with author Dror Poleg to talk about the future of office space and demand in a post-COVID-19 environment. And Yardi Matrix’s Paul Fiorilla noted that the newly enacted $1.9 trillion COVID-19 relief package should provide a short-term boost to the most impacted segments of the industry, while also signaling a new wave of federal policies in the making. Later in the month, Fiorilla wrote about the implications of the unprecedented $5.3 trillion in stimulus packages for commercial real estate.
In the context of a global computer chip shortage, Intel unveiled plans for two new factories in Chandler, Ariz., in a $20 billion investment meant to expand its semiconductor manufacturing capacity. This came shortly after news came out that Taiwanese semiconductor producer TSMC’s similar facilities, also in the Phoenix area, are expected to be three times bigger than initially announced, with the first phase alone adding up to 3.8 million square feet.
Meanwhile, Google is boosting its Manhattan presence, with plans to invest more than $250 million in the state this year as part of its larger, $7 billion nationwide push. Cologix has acquired a land parcel where it is set to develop a new 250,000-square-foot data center in a move that will increase its capacity by 40 megawatts.
The industrial sector has also benefited from the increased demand for e-commerce, and developers continued to take notice. Duke Realty broke ground on two build-to-suit developments for two national retailers in the Chicago area totaling more than 1.8 million square feet. In the Inland Empire, Black Creek Group is also planning to develop two industrial projects—Etiwanda Commerce Center and Riverside Logistics Center. And in Texas, Amazon announced plans for its first fulfillment center in Amarillo, in a $100 million investment. On a national level, some 350 million square feet of industrial space is now underway.
Here are CPE’s must-reads for last month: