A new market analysis compiled by Yardi® Matrix reports that the industrial sector of the U.S. economy is performing solidly. Warehouse and distribution assets posted double-digit total returns, record low vacancy rates and all-time high rents in 2017 and are on track for an even stronger year in 2018, according to the report.
The report, titled "Hitting Its Stride," details how rising e-commerce sales and online retailers' focus on moving closer to customers have made warehouse space popular with both investors and tenants.
See Also: Yardi Matrix report shows U.S. rent surge in April
Biopharmaceutical companies, whose growth potential and long-term returns have drawn increasing investment attention, are seeking new locations away from such traditional centers as Boston, San Francisco and Seattle. Meanwhile, rising imports, expanded Panama Canal capacity and larger cargo ships have driven up demand for industrial space at U.S. seaports. These and other factors "prompted a number of architects to design [warehouses] upward instead of outward," the report says, and inspired new designs to accommodate direct consumer delivery, refrigeration, vertical development and sustainability.
The report, which can be downloaded here, also includes a Q&A with Jim Connor, chairman and CEO of industrial asset owner and operator Duke Realty Corp.
Related Stories
Warehouses | Oct 19, 2023
JLL report outlines 'tremendous potential' for multi-story warehouses
A new category of buildings, multi-story warehouses, is beginning to take hold in the U.S. and their potential is strong. A handful of such facilities, also called “urban logistics buildings” have been built over the past five years, notes a new report by JLL.
Giants 400 | Oct 11, 2023
Top 100 Industrial Construction Firms for 2023
ARCO Construction, Clayco, Walbridge, and Gray Construction top the ranking of the nation's largest industrial facility sector contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Oct 11, 2023
Top 90 Industrial Sector Engineering Firms for 2023
Jacobs, IPS, CRB Group, and Burns & McDonnell head the ranking of the nation's largest industrial facility sector engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Oct 11, 2023
Top 100 Industrial Sector Architecture Firms for 2023
Ware Malcomb, Arcadis, Stantec, and Gresham Smith top the ranking of the nation's largest industrial facility sector architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Industrial Facilities | Oct 11, 2023
Industrial construction slows, but longer-term demand will fuel development
Two reports assess the industrial sector’s future, including opportunities for multistory urban logistics centers.
Building Materials | Oct 2, 2023
Purdue engineers develop intelligent architected materials
Purdue University civil engineers have developed innovative materials that can dissipate energy caused by various physical stresses without sustaining permanent damage.
Giants 400 | Oct 2, 2023
Top 50 Data Center Construction Firms for 2023
Turner Construction, Holder Construction, HITT Contracting, DPR Construction, and Fortis Construction top BD+C's ranking of the nation's largest data center sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Oct 2, 2023
Top 60 Data Center Engineering Firms for 2023
Jacobs, Burns & McDonnell, WSP, EXP, and Alfa Tech head BD+C's ranking of the nation's largest data center sector engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Oct 2, 2023
Top 30 Data Center Architecture Firms for 2023
Corgan, HDR, Gensler, Page Southerland Page, and HED top BD+C's ranking of the nation's largest data center sector architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.