{"id":1004513437,"date":"2021-03-01T07:10:14","date_gmt":"2021-03-01T15:10:14","guid":{"rendered":"http:\/\/internal.cpexecutive.com\/?p=1004513437"},"modified":"2021-05-15T10:11:25","modified_gmt":"2021-05-15T18:11:25","slug":"older-multi-tenant-industrial-assets-attract-new-demand-jll","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/older-multi-tenant-industrial-assets-attract-new-demand-jll\/","title":{"rendered":"Older, Multi-Tenant Industrial Assets Attract New Demand: JLL"},"content":{"rendered":"
\"\"

120 Interstate Northwest, Atlanta. Image courtesy of JLL<\/em><\/p><\/div>\n

Warehouse and distribution space has been a hot sector for many years\u2014especially logistics properties that are sizable and have easy access to major highways, rail service and\/or airports.<\/p>\n

But now a new report from JLL<\/a> highlights a slice of this sector that has been rather overlooked, yet is garnering investor interest\u2014a niche the company has dubbed \u201cmultiuse logistics.\u201d These typically are older multi-tenant properties in infill locations within urban markets, run from 20,000 to 100,000 square feet and can accommodate distribution, flex showroom, industrial showroom, R&D, warehouse and\/or manufacturing uses.<\/p>\n

Many of these properties \u201cboast compelling rent growth profiles\u201d and enjoy diversified tenant bases, according to the JLL report. Other factors driving the value of this sub-class include very limited inventory<\/a> and hyperlocal or regional tenants that want to stay in the market they serve. Current owners of these properties are often the original developers, and they, too, are typically more local.<\/p>\n

\n

READ ALSO:<\/strong> Where Industrial Real Estate Opportunity Knocks<\/a><\/p>\n

\n

\u201cThe long-term outlook for multiuse logistics is strong, with clear industry momentum from \u2018fabric of society\u2019 tenants and growing investor demand for this sub-class. With new yield-focused investors entering into the industrial space, small-bay product is desirable as an alternative to the ever-tightening bulk industrial market,\u201d Senior Managing Director John Huguenard, co-head of JLL\u2019s Industrial Capital Markets group, said in a prepared statement.<\/p>\n

\u201cThis sub-class has huge potential upside on rent growth driven by low vacancy and limited new supply,\u201d he added. \u201cMultiuse logistics rent has grown more than 54 percent since 2010 and nearly 21 percent since 2017, outpacing the national average for the broader industrial market.\u201d<\/p>\n

Often these older properties have seen urban development became denser around them, making them difficult to replicate or replace, yet highly valuable as last-mile logistics facilities.<\/p>\n

According to JLL\u2019s research, multiuse logistics is both the smallest part of the U.S. industrial real estate market (15 percent) and the sub-class that\u2019s seeing the slowest inventory growth\u2014just 5.1 percent since 2010, versus 12.2 percent for industrial space overall.<\/p>\n

Meanwhile, the increased demand for these assets has pushed average vacancy down nationwide, to less than 9 percent, according to JLL.<\/p>\n

Counting 2020 transactions over $5 million, 1,973 of these properties traded at an average of $128 per square foot with an average cap rate of 6.62 percent, JLL reported. <\/p>\n

An example in Atlanta <\/strong><\/h2>\n

Just a few months ago, JLL represented the seller<\/a> of an Atlanta light industrial business park that checks the boxes for a multiuse logistics asset. The four-building 120 Interstate Northwest totals 281,677 square feet, but that space is split among 43 suites averaging about 6,500 square feet\u2014classic small-bay spaces.<\/p>\n

The 22.7-acre property sold for $38.5 million. The asset was 87 percent leased to 36 tenants at the time of sale.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a new report, the vacancy rate for multi-use logistics is less than 9 percent.<\/p>\n","protected":false},"author":882,"featured_media":1004529291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742],"tags":[32796],"class_list":["post-1004513437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","tag-jll"],"acf":[],"yoast_head":"\nOlder, Multi-Tenant Industrial Assets Attract New Demand: JLL - 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\/older-multi-tenant-industrial-assets-attract-new-demand-jll\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Older, Multi-Tenant Industrial Assets Attract New Demand: JLL\" \/>\n<meta property=\"og:description\" content=\"According to a new report, the vacancy rate for multi-use logistics is less than 9 percent.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/older-multi-tenant-industrial-assets-attract-new-demand-jll\/\" \/>\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=\"2021-03-01T15:10:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-15T18:11:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/05\/A-logistics-property-in-JLLs-portfolio.-Image-courtesy-of-JLL-300x233-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"233\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\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\/older-multi-tenant-industrial-assets-attract-new-demand-jll\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/older-multi-tenant-industrial-assets-attract-new-demand-jll\/\",\"name\":\"Older, Multi-Tenant Industrial Assets Attract New Demand: JLL - 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