{"id":1004716425,"date":"2024-06-07T03:53:23","date_gmt":"2024-06-07T11:53:23","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004716425"},"modified":"2024-06-18T01:54:56","modified_gmt":"2024-06-18T09:54:56","slug":"i-con-east-special-report-industrial-opportunity-snapshot","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/","title":{"rendered":"I.CON East Special Report: Industrial Opportunity Snapshot"},"content":{"rendered":"\n

The logistics sector faces much-discussed challenges: shifting tenant needs, a decline in new product and a tough deal environment. But even as they detailed those issues on Thursday morning, executives at NAIOP\u2019s annual I.CON East conference also saw plenty of signs of long-term opportunity and investor interest.  <\/p>\n\n\n

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\"Panel
Panel discussion at NAIOP\u2019s annual I.CON East conference. Image by Paul Rosta<\/em><\/figcaption><\/figure><\/div>\n\n\n

Uncertainty in the capital markets, and low deal volume, make underwriting transactions a challenging proposition. \u201cEvery deal kind of feels like a unicorn,\u201d noted Emily Cannon, chief investment officer at Dogwood Industrial Properties, during a panel discussion of the eastern U.S market\u2019s outlook. Yet the resolution of one major sticking point in industrial transactions suggests that an upswing in deals may be on the horizon.<\/p>\n\n\n\n

 \u201cI think buyers and sellers are on the same page, finally,\u201d Cannon said, adding that the typical bid-ask gap has shrunk to about 5 percent. Capital markets stability would enable investors to accurately price different categories of industrial assets, she added.<\/p>\n\n\n\n

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READ ALSO<\/strong>: How Will the Manufacturing Investment Boom Impact Industrial CRE?<\/a><\/p>\n\n\n\n

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And though many investors continue to wait on the sidelines, there is no shortage of interest in the sector. \u201cThere\u2019s a large amount of capital that people have been waiting to spend, and they are confident in the long-term trajectory of logistics,\u201d remarked Sonya Huffman, chief administrative officer at Link Logistics Real Estate. The Blackstone affiliate reported on April 30<\/a> that it secured $6.5 billion in refinancings during the first quarter.<\/p>\n\n\n\n

As Huffman put it: \u201cFundamentally it comes down to what it\u2019s always come down to: buying good real estate in good locations.\u201d<\/p>\n\n\n\n

Industrial tenant action<\/h2>\n\n\n\n

Asked for snap evaluations of the investment and development prospects in sample eastern U.S. markets, panelists gave a thumbs-up to a diverse group that included New Jersey, Baltimore, Pennsylvania, Charlotte, N.C., and Nashville, Tenn.<\/p>\n\n\n

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\"NAIOP\u2019s
NAIOP\u2019s annual I.CON East conference. Image by Paul Rosta<\/em><\/figcaption><\/figure><\/div>\n\n\n

The industries most active in leasing range from third-party logistics, construction products and food to HVAC. \u201cThere\u2019s been a lot more 3PL activity,\u201d reported Kate Nolan Bryden, senior vice president at MRP Industrial. The company is active in the Mid-Atlantic and delivered about 6 million square feet of new product in 2023. Spaces of 250,000 square feet or smaller are attracting increased interest, she added.<\/p>\n\n\n\n

In addition to location, several key factors rank high on the list of tenant priorities, including labor costs, transportation, utilities and local incentives. The industrial sector\u2019s building boom has created abundant new product, which is taking time for tenants to lease and occupy. <\/p>\n\n\n\n

But that supply-demand issue may be temporary. \u201cOur data is showing that we\u2019ll be reaching a state of equilibrium by the end of the year,\u201d reported Stephanie Rodriguez, Colliers\u2019 national director of industrial services and the panel\u2019s moderator. <\/p>\n\n\n\n

Imports are up, higher than even in 2019 and 2020, and inventories have largely rebalanced, but many industrial tenants are still reluctant to expand or move to new locations. \u201cThat\u2019s why we\u2019re seeing so many renewals,\u201d said Brandi Hanback, executive vice president & co-head of development at Rockefeller Group. Though tenants are often still leery of new commitments, Hanback reported an uptick in property tours by prospects.<\/p>\n\n\n\n

Operations insights<\/h2>\n\n\n\n

A noteworthy operations trend is also shaping tenant strategies<\/a>. To help meet the rising volume of consumer demand, \u201cAmazon is trying to take more control of that shipping supply chain,\u201d Hanback said, \u201cand that means they need more space.\u201d<\/p>\n\n\n\n

One perhaps underappreciated issue for new projects is access to power. Tenants themselves aren\u2019t always able to project their power supply needs until after they are up and running. That, in turn, makes it difficult or impossible to accurately arrange the necessary supply from utilities. Upgrading power is easier in some states than others. As Nolan Bryden related, MRP Industrial was able to double power capacity at a recently completed property in Maryland. Securing the necessary switching gear can be a challenge, as well, Huffman noted.<\/p>\n","protected":false},"excerpt":{"rendered":"

At NAIOP\u2019s annual regional conference, executives detailed what\u2019s ahead in the highly fluid sector. <\/p>\n","protected":false},"author":445,"featured_media":1004716475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,51037],"tags":[51531,33791,32878,33348],"class_list":["post-1004716425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-trends","tag-link-logistics","tag-mrp-industrial","tag-naiop","tag-the-rockefeller-group"],"acf":[],"yoast_head":"\nI.CON East Special Report: Industrial Opportunity Snapshot - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Executives at NAIOP\u2019s annual I.CON East conference saw plenty of signs of long-term opportunity and investor interest for industrial assets.\" \/>\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\/i-con-east-special-report-industrial-opportunity-snapshot\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"I.CON East Special Report: Industrial Opportunity Snapshot\" \/>\n<meta property=\"og:description\" content=\"Executives at NAIOP\u2019s annual I.CON East conference saw plenty of signs of long-term opportunity and investor interest for industrial assets.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/\" \/>\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=\"2024-06-07T11:53:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-18T09:54:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/I.CON-panel.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Rosta\" \/>\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\/i-con-east-special-report-industrial-opportunity-snapshot\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/\",\"name\":\"I.CON East Special Report: Industrial Opportunity Snapshot - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/I.CON-panel.jpg\",\"datePublished\":\"2024-06-07T11:53:23+00:00\",\"dateModified\":\"2024-06-18T09:54:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/ed97e8245f278ce01a7b951f706152af\"},\"description\":\"Executives at NAIOP\u2019s annual I.CON East conference saw plenty of signs of long-term opportunity and investor interest for industrial assets.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/i-con-east-special-report-industrial-opportunity-snapshot\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/I.CON-panel.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/I.CON-panel.jpg\",\"width\":800,\"height\":600,\"caption\":\"Panel discussion at NAIOP\u2019s annual I.CON East conference. 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