Goodman’s Post

🏢 Brookfield Properties Acquires Massive Industrial Portfolio for $1.3B 🚀 Brookfield Asset Management is making waves in the industrial sector with its latest acquisition of a 14.6M SF portfolio of infill light industrial assets for $1.3B. This purchase, covering 128 buildings across 20 markets, significantly boosts Brookfield’s global logistics footprint. Key Highlights: •Extensive Coverage: The portfolio includes 18 properties in Atlanta, 17 in Houston, 16 in Dallas, and 12 in Tennessee. •Massive Footprint: Brookfield’s existing portfolio now totals approximately 150M SF, with another 90M SF in development. •Sustainability Focus: Brookfield plans to enhance the buildings’ sustainability, efficiency, and safety. •Recent Activity: In May, Brookfield delivered a 146K SF logistics center in Pflugerville, Texas, and last month, it acquired another industrial portfolio for $825M. Despite cooling demand in the industrial sector, Brookfield remains bullish and continues its buying spree, leveraging $106B worth of dry powder to capitalize on opportunities. 📈 With a 6.5% vacancy rate still lower than pre-pandemic levels, Brookfield’s strategic investments position them well for future growth. What are your thoughts on the future of the industrial real estate sector? 🤔 Bisnow Chicagoland Chamber of Commerce #IndustrialRealEstate #Logistics #Brookfield #RealEstateInvesting #Sustainability #CommercialRealEstate #CRE https://lnkd.in/gPsyv8VN

Australia's largest listed real estate investor, is shifting its focus from warehouses to data centers, which now account for over 40% of its $13 billion development projects. CEO Greg Goodman highlighted the growing demand for data storage, driven by AI, cloud computing, and e-commerce, as a major opportunity for the group. Goodman expects data centers to make up over 50% of its projects soon, and foresees the company managing $80-100 billion worth of developments in the next 7-9 years. Despite challenges like energy demands and carbon transition risks, the high returns (over 9%) on data centers make them a lucrative investment. Goodman's global presence and partnerships in cities like Paris, London, and Sydney position it well to capitalize on this growth. The group has also seen strong financial performance, with a 15% rise in operating profit to $2.05 billion, although its share price fell slightly due to lower-than-expected growth forecasts. For further information -

After spending years as the darling of commercial real estate, industrial might be starting to falter. Details below 👇 US industrial net absorption is predicted to have its weakest Q1 performance in over a decade, according to data from CoStar Group. The lack of demand, even with relatively low inventory compared to other property types, is causing open spaces to remain unsold. Third-party logistics companies that had previously increased demand are now closing extra distribution centers and putting them up for sublease. Major retailers are also feeling economic pressures and closing distribution centers. As a result, big single-tenant centers will need to go to similarly sized companies as restructuring them into multi-tenancy facilities is costly and challenging. #realestateinvesting #multifamilyinvesting #industrialrealestate

Economic shifts brought changes in the industrial sector last year: 📉 Reduced Mega Leases: 2023 saw fewer leases of 1M+ sq. ft. due to economic uncertainty and inventory needs. 📏 Lease Size Decline: The top 100 leases totaled 98.6M sq. ft., down 8% from 2022, with the average size shrinking. 🔄 Renewals on the Rise: 30 of the top 100 were renewals, reflecting evolving tenant strategies. 🌐 Diverse Tenant Mix: A shift in tenant composition, with growth in 3PL operators, auto, manufacturing, and more. 🏢 Market Leaders: The Pennsylvania I-78/81 Corridor, DFW, and Memphis led in top leases. 📈 Future Outlook: Anticipating increased demand for mega distribution centers in 2024, as the economy stabilizes. IOSA Property Management remains adaptable to industry shifts, ensuring we meet your evolving needs. How can we assist you in navigating these changing dynamics? Read more about this insight from CBRE here: https://lnkd.in/e56TSCnY #IndustrialTrends #2023LeaseTrends #IndustrialInsights #2023Transformations #PropertyManagement #IOSAPM #Engineering #Excellence #IndustrialRealEstate #IOSAPropertyManagement #FacilityOptimization #IndustrialProperty #RealEstateManagement #IndustrialPropertySolutions #IOSA

Colliers' national industrial research team just published "An Inside Look at the Top 25 Industrial & Logistics Markets". The U.S. industrial market has started to normalize following 10 quarters of rapid expansion since the end of 2020, although the 25 largest markets covered in this report have proven more resilient than others. Record speculative construction completions have pushed vacancy rates higher in nearly all markets while net absorption has normalized to pre-pandemic levels. Despite headwinds, the outlook for industrial remains favorable as e-commerce and reshoring continues to grow. 

Second Quarter numbers look good for most of the industrial sector. According to this story in GlobeSt.com, Cushman & Wakefield is reporting that absorption of space, primarily in newly developed buildings, was more than double the first quarter level. Some places are still experiencing rough spots--primarily along the west coast. But in general ... the numbers are positive! https://lnkd.in/dG_HcHyi

📊 Which institutional investor said this on their last earnings call? "We repositioned our portfolio over time by selling U.S. office buildings and instead bought warehouses, rental housing, and eventually, data centers. These three sectors comprise approximately 75% of our global real estate equity portfolio today compared to 2% in 2007." Hint: $300B+ AUM #OfficeMarket #RealEstate #CRE #DataCenters #Industrialrealestate

Private Capital fuels growth in Industrial market with record activity in 2024 - Cushman & Wakefield   Private capital investors are making their presence felt in the Logistics & Industrial (L&I) investment market, accounting for 53% of transaction value so far in 2024, a significant rise from the long-term average of 15%. This follows more than $1 billion in national acquisitions by private capital in 2023, signaling a major shift in market dynamics.   Amidst this rise, a generational wealth opportunity has emerged with the 100% freehold interest sale of 9-15 Foundation Road, Truganina, VIC. The property, being marketed by Cushman & Wakefield’s Chris Jones and Charlie Holmes is expected to attract significant interest. With a guide price just above land value, estimated at $27 million, the sale represents exceptional value relative to the property’s replacement cost which is in excess of $45 million.   Chris Jones of Cushman & Wakefield said “The property’s combination of secure long-term income, with 4.0% average annual increases, and genuine expansion capability makes it a standout opportunity in today’s market.”   Charlie Holmes of Cushman & Wakefield said “The current income of $1,270,159 per annum, equating to $40 per square metre of site area, is considered significantly below market levels. This affords an incoming purchaser substantial long-term income upside and capital growth potential.” Read more about Private Capital on The INDSUTRIALIST > https://lnkd.in/gxWieQGF COMMO Tony Iuliano Adrian Rowse Gary Hyland Nick Goodridge Jay Nash Brendan Harrison Oliver McIntosh Jack Shearer Vivian Nguyen Sarah Baker Bronte Senn #cushmanandwakefield #cushwake #privatecapital #industrialrealestate #industrialproperty #logisticsrealestate #cushwakecapitalmarkets #industrialandlogistics

Goodman has raised its expectations for earnings per share growth to 13 percent for the financial year 2024, citing robust demand from the data centre sector as the primary catalyst. This upgraded forecast reflects the company's optimistic outlook on its financial performance, driven by the sustained momentum in the data centre industry. As businesses increasingly rely on digital infrastructure and cloud computing services, the demand for data centre facilities continues to surge, propelling Goodman Group's growth trajectory. The company's strategic positioning within this burgeoning sector underscores its ability to capitalize on evolving market dynamics and deliver strong financial results. This forecast upgrade not only underscores Goodman Group's confidence in its business strategy but also highlights the pivotal role of the data centre sector in driving growth opportunities within the broader real estate landscape. #GoodmanGroup #EarningsForecast #EPSGrowth #FinancialOutlook #DataCentreDemand #RealEstate #FinancialPerformance #BusinessGrowth #MarketTrends #InvestmentOpportunity #SectorGrowth #StrategicPositioning #CloudComputing #DigitalInfrastructure #DataCenterSector #MarketMomentum #IndustryForecast #FinancialProjections #EconomicOutlook #BusinessStrategy

In case you missed it, here’s JLL’s Quarterly Australian Logistics & Industrial Market Overview for Q4 2023. Q4 2023 marked a resurgence in industrial property project completions, reaching levels unseen since Q3 2022, propelled notably by developments in Sydney and Melbourne. Despite increase in supply, Q4 2023 saw average market rents continue to trend upwards across Australia, increasing by 3.9% to A$186 per sqm p.a. The supply / demand mismatch and the ongoing challenges for businesses seeking modern, efficient warehouse space is still placing upward pressure on asking rents. Download and read the full report: https://hubs.li/Q02ntpxL0 Whether you have a current requirement or just want to chat about industrial property, book a call-back with Chris Perrone (via link below): >> https://hubs.li/Q02ntjdZ0 << #JLL #uTenant #IndustrialProperty #Warehousing