A Brief Outlook about Pace of Growth for Warehouse & Distribution centers in 2018 Industrial leading 2017 in most demand, construction, lowest vacancy, and strong distribution with e-commerce tenants were warehouses and distribution centers. The real estate market displays that it is hard to find “big-box� space for wellequipped warehouses and distribution centers in the us. according to the year end reporting for 2017 published by a reputed source, it was reported that 68% of big box leasing was concluded via new construction buildings in the year 2017. Pace for Industrial construction of warehouses and distribution centers in 2018 As per some of the leading real estate experts in the US has predicated that the speculative industrial construction pipeline will remain robust in the 2018. The owner-user and BTS projects combined 28 percent will reach new heights in the year 2018. Breakdown of new groundbreakings 71.5% Speculative 22% BTA 6% Owner-User Demand of industrial wareshouses and distribution will be high in 2018 2017 was a record breaking year in the industrial real estate space such as warehouses and distribution centers. Construction cycle for industrial space was high in demand by leading e-commerce players like Amazon and Ebay. High demand of construction of industrial real estate space will continue to raise in the year 2018. It is expected that the demand of warehouses & distribution centers, manufacturing space and special purpose properties will increase significantly
in the year 2018. Many real estate investors has taken commerical bridge loan finance in order to complete the construction of warehouses, distribution centers and other industrial spaces. Risk associated with oversupply for industrial space in the year 2018 Real estate experts believe that the oversupply of warehouses & distribution centers and other industrial real estate space will be high risk investment for real estate investors if there is any slowdown in future industrial demand. Is it risky to invest in industrial space in the 2018? Releasing rates for speculative built buildings increased by whopping 320 points to nearly 27%, which is a clear indication of continued healthy demand for tenants. industrial space has a excellent potential for growth in the year in 2018. Total Vacancy dropped from 11.9% in 2013 to 7.9% year end 2017. All numbers and data support a healthy 2018 in the industrial space with 1-3 cities leading the way. Many experts believe that it is a great time to invest in industrial space such as warehouses and distribution centers, which are situated at right locations. By investing in such properties, the real estate investors can clear a reasonable profit on their investments. As companies continue to gobble up space, competition for the most optimal space remains fierce, and the development market moves ever forward. Lowest Vacancy Cities in Industrail: Los Angeles, East bay, Orange County, SF Mid Pininsula, Long Island, and Seattle. Highest Quarterly Net Absorbtion: Philadelphia, Fort Worth / Dallas, Atlanta, Chicago, Island Empire, and Detroit. Highest Under Construction: Island Empire, Dallas / Fort Worth, Chicago, Atlanta, Philadelphia, and Los Angeles.