{"id":1004066731,"date":"2013-02-06T11:45:06","date_gmt":"2013-02-06T19:45:06","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004066731"},"modified":"2020-05-13T01:49:44","modified_gmt":"2020-05-13T09:49:44","slug":"industrial-evolution-a-four-year-market-outlook","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/","title":{"rendered":"Industrial Evolution: A Four-Year Market Outlook"},"content":{"rendered":"

By Michael Ratliff, Senior Associate Editor<\/em><\/p>\n

Predictions on the industrial market for 2013 to 2016 mirror the general economic outlook, with a few exceptions, according to an industrial real Estate forecast released by Cushman & Wakefield Inc. in late January. The U.S. economy should continue to grow at a modest pace through most of 2013, with a GDP expanding by roughly 2 percent. At some point (hopefully by late 2013 or early 2014), the U.S. and eurozone debt issues will finally see a resolution, and the amount of risk taking and economic growth will increase.<\/p>\n

\"\"<\/a>

John Morris, industrial services leader, Americas, Cushman & Wakefield Inc.<\/p><\/div>\n

\u201cSigns are pointing to 2013 or early 2014, and I agree with that principle,\u201d John Morris, industrial services leader, Americas at Cushman & Wakefield told Commercial Property Executive<\/em>. \u201cBut I would also be unsurprised to be talking again in November 2013 saying it looks like we are looking at late 2014 or early 2015.\u201d<\/p>\n

In the meantime, changes in consumer behavior and retailer offerings are poised to create growth in the warehouse\/distribution segment of industrial real estate. According to Morris, investors should be looking at big box space near urban centers due to online buying habits.<\/p>\n

\u201cThe percent of things other than vehicles that are bought electronically are above 20 percent of all purchases and that number is climbing fast. This all has significant implications about distribution,\u201d he added.<\/p>\n

Retailers like Amazon and Walmart are going to be looking for that Class A space near urban centers as they seek to decrease shipping times. Amazon is currently testing a same day delivery model in 10 cities. Morris said he would not be surprised if he woke up one morning in the next six months to news that Amazon is now offering same-day-delivery to over 80 percent of Americans.<\/p>\n

\"\"<\/a>

Source: Cushman & Wakefield Inc.
Numbers from Cushman & Wakefield’s tracked US Markets.<\/p><\/div>\n

This type of shopping is going to push other retailers into a position where they have to offer same day service to compete. According to Morris, this might strengthen the market for multi-tenant industrial assets. A retailer that is significantly smaller than Amazon, but has been pushed to fill same day orders, is going to be looking for space close to cities and multi-tenant provides the best solution.<\/p>\n

\u201cThese users might not be able to have 10,000 square feet of their own space where the operating leverage is terrible, but maybe they could go into 50,000 square feet and there will be four other tenants in there with them,\u201d Morris said. \u201cTop quality multi-tenant space close to urban centers will be about as good as it gets.\u201d<\/p>\n

The manufacturing sector is another area that should see growth in upcoming years. Manufacturing has consistently been between 11 to 13 percent of GDP, and current predictions have it growing out of that range in the near future depending on the economy. While China\u2019s market share of manufacturing doubled in the last five years, rising labor and energy costs in the PCR are starting to have an impact in sourcing decisions according to the Cushman & Wakefield report. Take, for example, Apple Inc.\u2019s decision to shift some Mac manufacturing back to the U.S. from China in 2013. This is predicted to have a ripple effect on the local economy, and should attract cluster of suppliers and workers.<\/p>\n

\u201cI think in the near term we will be more talk of manufacturing being market based, instead of offshore versus onshore,\u201d Morris said, adding that investors are starting to take note. In a survey issued before Cushman & Wakefield\u2019s national capital markets symposium, the firm found that out of 44 companies interviewed, 43 said that they were underweighted in industrial holdings and were looking for a larger portfolio share. \u201cPeople are looking to invest in industrial. They believe in industrial, its growth, its stability and its limited volatility compared to office and retail. So we are really in a great position at this point.<\/p>\n

For more details on the state of industrial real estate, be sure to check out the complete US Industrial Real Estate Forecast<\/a> issued by Cushman & Wakefield Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"

Predictions on the industrial market for 2013 to 2016 mirror the general economic outlook, with a few exceptions, according to an industrial real estate forecast released by Cushman & Wakefield Inc. in late January.<\/p>\n","protected":false},"author":1269,"featured_media":1004066733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004066731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nIndustrial Evolution: A Four-Year Market Outlook - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Industrial Evolution: A Four-Year Market Outlook\" \/>\n<meta property=\"og:description\" content=\"Predictions on the industrial market for 2013 to 2016 mirror the general economic outlook, with a few exceptions, according to an industrial real estate forecast released by Cushman & Wakefield Inc. in late January.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2013-02-06T19:45:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-13T09:49:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"480\" \/>\n\t<meta property=\"og:image:height\" content=\"672\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"the Editors of Commercial Property Executive\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/\",\"name\":\"Industrial Evolution: A Four-Year Market Outlook - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg\",\"datePublished\":\"2013-02-06T19:45:06+00:00\",\"dateModified\":\"2020-05-13T09:49:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/1b82b91678533ae5d40e3240086a42bb\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg\",\"width\":\"480\",\"height\":\"672\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Industrial Evolution: A Four-Year Market Outlook\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/1b82b91678533ae5d40e3240086a42bb\",\"name\":\"the Editors of Commercial Property Executive\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fc4d938ac2881d5bcae0ddd8397983de4563e191bf8314571185ff32f8f83ea6?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fc4d938ac2881d5bcae0ddd8397983de4563e191bf8314571185ff32f8f83ea6?s=96&d=mm&r=g\",\"caption\":\"the Editors of Commercial Property Executive\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/theeditorsofcommercialpropertyexecutive\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Industrial Evolution: A Four-Year Market Outlook - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/","og_locale":"en_US","og_type":"article","og_title":"Industrial Evolution: A Four-Year Market Outlook","og_description":"Predictions on the industrial market for 2013 to 2016 mirror the general economic outlook, with a few exceptions, according to an industrial real estate forecast released by Cushman & Wakefield Inc. in late January.","og_url":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2013-02-06T19:45:06+00:00","article_modified_time":"2020-05-13T09:49:44+00:00","og_image":[{"width":480,"height":672,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg","type":"image\/jpeg"}],"author":"the Editors of Commercial Property Executive","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/","url":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/","name":"Industrial Evolution: A Four-Year Market Outlook - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg","datePublished":"2013-02-06T19:45:06+00:00","dateModified":"2020-05-13T09:49:44+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/1b82b91678533ae5d40e3240086a42bb"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg","width":"480","height":"672"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/industrial-evolution-a-four-year-market-outlook\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Industrial Evolution: A Four-Year Market Outlook"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/1b82b91678533ae5d40e3240086a42bb","name":"the Editors of Commercial Property Executive","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fc4d938ac2881d5bcae0ddd8397983de4563e191bf8314571185ff32f8f83ea6?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fc4d938ac2881d5bcae0ddd8397983de4563e191bf8314571185ff32f8f83ea6?s=96&d=mm&r=g","caption":"the Editors of Commercial Property Executive"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/theeditorsofcommercialpropertyexecutive\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/02\/John-Morris.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004066731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1269"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004066731"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004066731\/revisions"}],"predecessor-version":[{"id":1004438653,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004066731\/revisions\/1004438653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004066733"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004066731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004066731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004066731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}