Trends: for industrial real estate, the trend is to go upJune 13, 2018
When we look back over the past six decades, industrial buildings have grown nearly 50% taller to an average height of 31.4 feet, according to a recent report released by Costar. Meanwhile, vacancy has dropped. While other types of buildings have had mixed reviews for what the future holds, the industrial market has remained a bright spot in the industry for some time. This can partially be attributed to changes in the way we do business and perhaps more specifically to the warehousing needs of the strong e-commerce market.
With the strong industrial market, the challenge is to figure out how to get more storage in our already densely built out markets. The way to get more out of our industrial zones is to go up in our warehousing. To solve this problem, the attached article says that they expect “buildings that are about 20 feet tall will get torn down and rebuilt even taller to meet the growing demands of the industrial market.”
Regardless of whether or not we see existing buildings torn down for newer taller buildings, the strong industrial market is one to watch and could arguably be one of the best investments to make in the commercial real estate market.
To read the whole article from Costar, please click Costar Article_For Industrial, There’s Only One Way Left to Build_ Up_06-01-18