The industrial property sector is currently undergoing significant changes due to various factors such as technological advancements, changing consumer behaviors, and the global economic climate. These changes are expected to shape the future of industrial property, presenting both challenges and opportunities for real estate stakeholders.
There was a time that western companies would have almost certainly, in an almost reflex action, would outsource such basic items to contract factories in China and other parts of Asia. But there now a shift in dynamics.
The Live Local Act supersedes local governments’ zoning, density and height requirements for projects meeting specific affordable or workforce housing requirements, a controversial measure that some municipalities have opposed. Doral is among them.
Industrial returns might drop until the industry moves to logistics 2.0 properties. Even warehouses that are extraordinarily well located could be left to compete for a much smaller pool of tenants if their buildings do not meet the technological needs of potential occupiers.
The cost to develop multistory warehouses continues to be higher than a more traditional industrial box, one reason why taller warehouses are likely to remain a fairly niche part of the market and concentrate in the nation’s densest cities.