Newmark’s Post

Small bay industrial properties are gaining traction as a promising investment alternative to traditional big-box warehouses, thanks to their diverse tenant mix, built-in inflation protection, and strong rent growth potential. With limited supply and growing demand fueled by changing supply chain dynamics, population growth, and onshoring, these assets offer resilience against market fluctuations. Investors can capitalize on this trend by focusing on strategic locations, value-add opportunities, and active management to maximize returns in 2024 and beyond. https://lnkd.in/gn9YCTXR

Small bay industrial properties are becoming a hot investment in CRE due to their flexibility, diverse tenant base, and strong rent growth potential. Unlike larger warehouses, these assets offer more frequent rental adjustments and resilience against market fluctuations. While they come with some risks, like potential vacancies, these can be managed with a hands-on approach. Overall, small bay properties offer a great balance of risk and reward, making them a smart addition to any portfolio. It is going to be interesting to see where this trend goes given the recent focus on the larger alternatives.

Explore the latest trends shaping industrial commercial real estate in our February newsletter. Highlights include near-record low availability rates for smaller industrial properties and a rebound in shipping, signaled by rising demand and freight rates. Read more: https://lnkd.in/g_ztCRrM #industrialrealestate  #markettrends #marcusmillichap #marcusmillichapevingergroup #cre #commercialrealestate

Have. you ever wondered what is the most afforadable or profitable asset types? We have two key takeaways from our recent article on affordable and profitable commercial property investments: 1️⃣ Industrial Properties: A Stable Cash Flow Haven Industrial properties like warehouses and distribution centers offer investors a reliable source of income. Long-term leases and lower maintenance costs make them an affordable choice. Consider industrial real estate for a steady cash flow to grow your portfolio. 2️⃣ Flex Spaces: Versatility Meets Cost-Effectiveness Flex spaces are a game-changer! They cater to various business needs, from offices to storage and retail. These versatile properties offer a cost-effective way to invest in commercial real estate while adapting to changing tenant requirements. READ MORE: https://lnkd.in/gJwPbmWe

The industrial vacancy rate remains constrained, particularly in prime locations, resulting in increased rental growth throughout the market. Check out Avison Young's Q3 Chicago industrial market report for the latest insights and information! Please reach out with any questions or industrial real estate needs. Adam Haefner Zeke Rowan Marty Mikaitis #CRE #Industrial #Chicago #AvisonYoung

The Avison Young Q4 2023 Chicago #Industrial Market Report is here! The Chicago industrial market has seen a decline in construction activity due to factors such as rising interest rates and economic uncertainty. This decrease will result in a shortage of new inventory over the next 18-24 month. Currently, there is 20 msf under development, down 46% from 2022. A total of 41 msf was leased throughout 2023, down 22% from the yearly averages seen in 2016 to 2020.  http://bit.ly/3zUe3i0 #CRE #data #industrialrealestate #avisonyoung

The dynamic landscape of industrial real estate reveals lucrative opportunities, with self-storage facilities marking a noteworthy rise in profitability. Witness how Basis Industrial capitalizes on this trend for remarkable growth.

After years of rapid growth, the industrial market became imbalanced last year, with new development far outpacing occupancy gains. A record 607M SF of new industrial projects delivered across the country last year, while the U.S. saw 231M SF of positive net absorption. Nationwide vacancy rose by 194 basis points to 5.5%, the highest rate since 2016.New supply nearly tripled demand, as measured by net absorption during 2023, pushing vacancy higher in every region of the country and across nearly all industrial markets.The five largest industrial markets all saw spikes in vacancy: Greater Los Angeles' vacancy rate rose 256 basis points to 3.4%, Chicago's rose 75 basis points to 5.3%, Dallas-Forth Worth's rose 335 basis points to 8.5%, New York City's rose 183 basis points to 4.7% and Atlanta's rose 290 basis points to 6.6%. The fastest-growing markets in the country included Savannah, which saw 17% supply growth last year, followed by Charleston at 14.7% and Austin at 13%. Slowing construction starts should help bring supply and demand back into balance. #cre #commercialrealestate #Commercialrealestateadviser #Industrialrealestate

In my opinion, industrial real estate continues to be one of the most stable investments, especially in a market like today... and here's why: 1. Resilience: Industrial real estate typically houses essential businesses such as manufacturing, distribution, and logistics companies that WILL operate regardless of the state of the economy. 2. Long-term lease agreements: Leases can be anywhere from 3-20 years in length, which allows an owner to have a predictable stream of income throughout the term. 3. Diverse tenant base: Uses in industrial real estate vary heavily which protects owners from vacancies caused by industry-specific economic downturns. There is clearly more to be said, but I wanted to keep it brief... So if you want to get in the game, let us know! Robert Stout, SIOR Kevin Irwin Heather Loveless #CREinvestments #industrialrealestate

Small bay and mid bay industrial is a growing safe haven for investors seeking allocation to the overall industrial sector without the headwinds. Shallow bay (includes small and mid-bay) space accounts for over 70% of total industrial inventory in the U.S. by square footage. When you add to that, higher overall asking and taking rents vs. larger spaces combined with less new inventory (and in some markets no new inventory), well it speaks for itself.