Although e-commerce-fueled bulk logistics space is the darling of the current cycle, manufacturing stimulates industrial space demand for both factories and warehouses. Investors seeking higher cap rates are finding them in industrial spaces serving manufacturing. CLICK ON THE HEADLINE FOR MORE
If this trend continues, it could change the type of industrial space tenants require and the regions that see the greatest demand.
IOS has rapidly become one of commercial real estate’s hottest asset classes as a flood of new money has sent prices sky-high. But investors looking to enter the space may crash on the rocks of an industry that is trickier — and less like the rest of the industrial market — than first meets the eye, and the talent pool of people with expertise in navigating the hazards is limited.
The 21,890-square-foot building is located in Westport Corporate Park.
To arrive at the forecasts, NAIOP’s statistical model takes into account such factors as lagged net absorption, real gross domestic product growth, inflation and output gaps, monetary policy, and seasonal effects.