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.
South Florida’s industrial properties remain a valuable commodity for landlords and real estate investors as vacancies hover near record lows and rents continue to rise, developers and brokers say. However, with more warehouses being built and businesses less desperate for storage space, the wild days of annual double-digit rent hikes are long gone.
Industrial real estate near airports in the nation’s most densely populated areas could be attractive investments for 2023. With transportation accounting for up to 70% of overall supply chain costs, businesses are increasingly locating their distribution centers closer to airports, according to CBRE Supply Chain Advisory.
A warehouse crush across the U.S. is squeezing out smaller companies as big retailers fill industrial storage sites with their growing stockpiles of inventory. Logistics and real-estate specialists say many large retailers are demanding extra room to store excess inventories, driving up costs for smaller companies and in some cases driving them out of spaces.
It might not seem like a very attractive time to own real estate in the warehousing, distribution or manufacturing business. Not only have the last two years turned real estate, across the board, into an incredibly uncertain investment, but the Federal Reserve is also in the middle of a series of interest rate hikes that