Around The Nation: What’s Hot, What’s Not
The West Coast dominates the top five industrial market for buyers with Los Angeles, San Diego, Portland, Oregon and Sacramento, California in the top five. Nashville, Tennessee, was the city in the top five not on the West Coast.
While legalized cannabis is a factor for the three California cities and Portland, the biggest single commonality among these five markets is cyclical resiliency, according to Muoio. Vacancies are well below U.S. averages in these markets and are expected to remain that way as vacancies increase nationwide.
Ten-X Commercial’s top sell markets for industrial space is Dallas, Baltimore, San Antonio, Suburban Maryland and Columbus, Ohio.
The Cannabis Impact
While there’s a lack of hard numbers quantifying the impact the legalization of marijuana on the industrial sector, anecdotal evidence is bountiful – and for states ready to join the trend, the future is bright.
“Colorado is the first state that legalized (recreational use of marijuana), and we saw an increase in absorption; when Washington legalized it, we saw an increase in absorption; and we’re starting to see that in California post-legalization,” Muoio said.
Recreational use of marijuana is currently legal in eight states (including the District of Columbia), with several more states close to adding to that number. In New Jersey for example, gubernatorial candidate Phil Murphy, who is well ahead in the poll, has promised to sign a legalization bill soon after being sworn in.
Source: The Business Journals