{"id":1004554109,"date":"2021-10-14T04:44:45","date_gmt":"2021-10-14T12:44:45","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004554109"},"modified":"2022-12-09T02:17:12","modified_gmt":"2022-12-09T10:17:12","slug":"cpe-exclusive-industrial-sales-nearing-record","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/cpe-exclusive-industrial-sales-nearing-record\/","title":{"rendered":"SIOR: Industrial Sales to Surpass 2019 Record"},"content":{"rendered":"
\"Robert<\/a>

Robert Thornburgh, CEO, SIOR. Image courtesy of SIOR<\/p><\/div>\n

Forget Musk vs. Bezos, SpaceX vs. Blue Origin and Capt. Kirk actually<\/em> flying high above the stratosphere. The \u201cmassive race for space\u201d is down on the ground in the U.S., says a new report from the Society of Industrial & Office Realtors and LightBox.<\/p>\n

The report notes that industrial sales this year could top $120 billion (the record set in 2019), with average rents rising by 5 percent to 7 percent, or even more, and purchase prices increasing by at least that rate\u2014all despite varied headwinds.<\/p>\n

\n

READ ALSO: Construction Sector Sees Signs of Recovery<\/a><\/p>\n

\n

By mid-2021 industrial sales volume had reached almost $52 billion, and the average price per square foot had risen by nearly 25 percent year-over-year, to $120.<\/p>\n

The reasons for this bullishness are familiar. E-commerce was already booming, and the pandemic has only bolstered it. In the report\u2019s words, \u201cThis positive outlook is supported by the expectation that many pandemic-induced online buying habits will become ingrained patterns.\u201d<\/p>\n

E-commerce sales have grown by 40 percent over the past year and are expected to hit $1.1 billion by 2025.<\/p>\n

The October LightBox-SIOR Industrial Investor Sentiment Report is based on a survey of leading CRE investors, brokers and developers. In connection with today\u2019s start of CREate 360, SIOR\u2019s first in-person global event in nearly two years, in Nashville, Commercial Property Executive<\/em> was given exclusive initial access to the report.<\/p>\n

Report\u2019s highlights<\/h2>\n

Rent increases could reach double digits in many metros. The top markets for year-over-year rent growth in 2021 include Northern New Jersey (33.3 percent), the Inland Empire (28.3 percent), Philadelphia (25.9 percent) and Nashville, Tenn. (20.3 percent). These are often in sync with super-low average vacancies; Los Angeles and the Inland Empire, for example, are seeing vacancy around 1 percent.<\/p>\n

There\u2019s especially outsized demand for large logistics portfolios, \u201cas they allow investors to scale up quickly in this coveted sector,\u201d the report says. It cites Blackstone\u2019s recent acquisition of Toronto-based WPT Industrial REIT in a $3.1 billion deal that encompassed 110 properties in 19 states.<\/p>\n

\"2021<\/a>

2021 Industrial Sentiment Report. Chart courtesy of SIOR and LightBox<\/p><\/div>\n

Industrial construction is working to keep up with surging demand. About 151.5 million square feet was completed in the first half of this year, and the development pipeline totals about 410 million square feet, with an impressive 60 percent of it already preleased. Some of the top markets for construction are Dallas\u2013Fort Worth, Atlanta and Chicago.<\/p>\n

Optimism despite headwinds<\/h2>\n

And that is where survey participants see the strongest headwinds\u2014in rising construction costs and in the costs and availability of labor, as well as some materials. These issues, in their judgment, well outrank concerns about intermodal port congestion and other supply chain disruptions.<\/p>\n

\"Top<\/a>

Top Secondary Markets for Industrial Growth. Chart courtesy of SIOR and LightBox<\/p><\/div>\n

For example, prices for materials such as steel, lumber and plywood have increased by 5 percent to 60 percent or more.<\/p>\n

Still, none of these difficulties are expected to \u201cdampen investor enthusiasm for this sector,\u201d according to the report.<\/p>\n

\u201cAs e-commerce continues to transform our economy, investors are looking for every opportunity to gain entry or expand their positions in the industrial sector,\u201d said Tina Lichens, senior vice president of broker operations at LightBox.<\/p>\n

SIOR CEO Robert Thornburgh offers this advice: \u201cIf you are looking to lease or purchase industrial real estate in any major market, welcome to the extensive waiting list of other businesses all seeking similar solutions for their space needs. Supply and demand imbalances are the most significant we have ever seen for industrial space.\u201d<\/p>\n

Read the full report by SIOR-LightBox<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

E-commerce continues to propel the sector to new heights, the latest SIOR-LightBox report shows.<\/p>\n","protected":false},"author":882,"featured_media":1004546916,"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":[48950,32914,33187,46136],"class_list":["post-1004554109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","tag-coronavirus","tag-e-commerce","tag-sior","tag-tina-lichens"],"acf":[],"yoast_head":"\nSIOR: Industrial Sales to Surpass 2019 Record - 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\/cpe-exclusive-industrial-sales-nearing-record\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SIOR: Industrial Sales to Surpass 2019 Record\" \/>\n<meta property=\"og:description\" content=\"E-commerce continues to propel the sector to new heights, the latest SIOR-LightBox report shows.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/cpe-exclusive-industrial-sales-nearing-record\/\" \/>\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=\"2021-10-14T12:44:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:17:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/Stock-exchange.-Image-courtesy-of-Gerd-Altmann-via-Pixabay.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\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\/cpe-exclusive-industrial-sales-nearing-record\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/cpe-exclusive-industrial-sales-nearing-record\/\",\"name\":\"SIOR: Industrial Sales to Surpass 2019 Record - 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