BKM Capital Partners’ Post

As they say, the only constant is change, which certainly holds true for #industrialrealestate. The recent Prologis Industrial Business Indicator suggests that we’re about to see industrial vacancies reduce to record lows next year! Driven by the sustained upward trajectory of e-commerce, adjustments to the supply chain and increased stockpiling of inventory -- we are in a critical time for opportunities in our dynamic market. Check out more insights about the evolving market:

Big transactions for industrial and logistics space in 2023 drove the market’s average deal size up to record levels, new research by Savills has shown

Why Invest in Industrial Real Estate 🏭💰 Industrial real estate is a savvy investment choice for several reasons: 1️⃣ Steady Demand: The booming e-commerce industry demands efficient logistics, ensuring consistent growth in industrial space demand. 🚚📦 2️⃣ Nearshoring & Onshoring: Post-COVID, businesses are reshaping supply chains, favoring local manufacturing. This fuels demand for US industrial properties. 🌐🏭 3️⃣ Direct-to-Consumer Sales: Manufacturers sell directly online, requiring strategically located warehouses for swift deliveries. 🛒📲 4️⃣ Inventory Management: Just-in-case inventory strategies necessitate extra storage space, minimizing supply chain disruptions. 📈📦 5️⃣ Nimbyism: Resistance to new industrial development restricts supply, boosting property values. 🚧💼 In Conclusion 🤝: Industrial real estate, a resilient and lucrative asset class, thrives amidst changing dynamics. Its role in modern commerce makes it a standout choice for equity preservation and growth. 🌟🏢 #IndustrialRealEstate #InvestmentOpportunity #ECommerceBoom #SupplyChain #PropertyInvestment #ResilientAssets #RealEstateInvesting #USManufacturing #DirectToConsumer #Logistics #AssetClass #InvestmentProspects #Nimby #PropertyValue #EquityGrowth #InvestSmart

The logistics market is rebalancing, offering new growth opportunities in select locations and size categories after a period of scarcity and fierce competition for space. However, this window may be brief due to reduced new supply and signs of accumulated demand. Prologis Research forecasts the U.S. vacancy rate to peak in the mid-6% range in 2024, gradually dropping to the mid-5% range in 2025. Customers who acted quickly in past cycles are already leasing actively. We advise proactive planning and early action to capitalize on this phase of the logistics real estate mini cycle. Read the full report at: https://buff.ly/3KdZdYS #LogisticsMarket #RealEstateTrends #SupplyChain #ConstructionIndustry #BusinessInsights

🚚 The #Baltic Industrial & Logistics Figures Q1 2024 are out! The segment shows strong resilience with development activity on the rise. Stock offices are taking the lead, although landlords need to employ unconventional strategies to secure 100% occupancy levels. 💡 Check out the report for more trends and stay up to date with the market's developments: https://cbre.co/3xRkrbY

"Bumper year for Dublin industrial and logistics market as take-up rises 10% to 3.3m sq ft in 2023" - read about our latest #research report here: https://lnkd.in/ewdaP_NR With take-up in 2023 coming to just under 3.3 million sq ft, a 10% rise on the previous year and 11% ahead of the 10-year average, the total number of deals was 79, meaning the average deal size was 42,000 sq ft – the largest annual average this cycle. There were 22 transactions of big-box units sized 50,000 sq ft or more, accounting for 68% of space taken. This compares with a ten-year average of 52% and is the highest share since the series began in 2014. A growing share of transactions have occurred across big-box units over the past decade, reflecting occupiers’ appetite for expansion of their Irish operations – with the proportion of deals attributable to this size category rising from 18% in 2019 to 28% in 2023. Read the report in full here: http://sav.li/7r7

$300 billion in less than three years: Australia’s Industrial Property Market The industrial property market in Australia has nearly doubled to $300 billion in less than three years. With the e-commerce boom and ongoing infrastructure developments, the demand for warehouse spaces is soaring. Join the ranks of global property investors shifting focus to prime logistics properties. Discover why industrial spaces are projected to exceed $400 billion in value over the next decade. Interested in the future of industrial investments? Click the link in our bio to connect with our expert strategists and explore the opportunities in the high-demand sector! #IndustrialProperty #CommercialInvestment #Ecommerce IndustrialGrowth #PropertyInvestment #AustralianPropertyMarket #InvestmentStrategy #RethinkInvesting

#IndustrialRealEstate continues to show its strength and resilience, with continued high demand outpacing supply. This trend is driven by e-commerce growth, supply chain reconfigurations and businesses building inventories. It will continue to drive vacancies to reach historic lows next year. If you’re in need of space, act now! Here is Prologis' recent Industrial Business Indicator:

2023 was a wild ride for commercial real estate markets. Despite challenging market conditions, industrial properties maintained its spot the preferred property type for commercial real estate investors. Stay in the know with the latest market data and trends for Orange County's industrial market. #industrialbuilding #industrialdevelopment #industrial #warehousespace #lastmile #logistics #supplychain #ecommerce #dropshipping

In 2022, the logistics real estate sector witnessed unprecedented growth, with approximately EUR 670 million invested, marking an all-time high record. However, this remarkable achievement was not without its challenges. The real estate market experienced a notable shift, particularly in the second half of the year, due to rising interest rates and increased financing costs. As yields increased nationwide, a noticeable gap emerged between the purchase price expectations of buyers and sellers, which has yet to be bridged. For the logistics industry and potential sellers, this has meant adapting to changing market conditions. While not every property can command the high prices of previous years, this shift has created opportunities for a broader market access, including new logistics properties, which were previously handled through internal channels or framework contracts. Investors and financing institutions are now more risk-averse, scrutinizing each transaction more thoroughly. Factors such as building condition and environmental, social, and governance (ESG) compliance play pivotal roles. While properties not meeting Class A criteria are still transacted, price adjustments are becoming commonplace. Despite these changes, logistics real estate remains a highly sought-after asset class, not only in Austria but across the EMEA region. According to the recent EMEA Investor Intentions Survey, nearly a quarter of respondents preferred logistics real estate. Most investors anticipate price discounts ranging from 10% to 30%. The logistics real estate sector is in a state of transformation, offering both challenges and opportunities for those involved. Read a detailed analysis on Austria's Logistics Market 2023 : https://zurl.co/ghWQ #LogisticsRealEstate #RealEstateInvestment #MarketTrends #Logistics2023 #CBRE