Hunt Rose | Class B Industrial Guy @NNN_Industrial

Spending each day thinking about industrial, by default I compare things heard about other asset classes to industrial. Attended a good local NAIOP breakfast today with a retail site selection panel. Interesting to hear a theme that correlates to smaller industrial properties.…

Industrial real estate version of “if you build it they will come.” CoStar recognized the 150,000 SF speculative development in Albuquerque, NM for an Impact Award. Completed in Q4 2023, the development is 77% leased. In talking to brokers across the country in Tier II or Tier…

Enjoyed the interview with Megan Creecy-Herman, Prologis - West Region President. Good read. • Prologis targets • Acquisitions: $500 million - $1 billion • Dispositions: $800 million - $1.2 billion • Development starts: up to $3.5 billion •…

Growth in e-commerce will continue to fuel industrial demand in the future. This growth increases the need for (i) warehouse / distribution space used for inventory storage, sorting goods, and fulfilling orders and (ii) smaller last-mile warehouse facilities near urban areas…

Industrial real estate has experienced a slowdown from the peak (increasing vacancy rates, slowing leasing velocity, decrease in cap rates, decrease in new construction starts, etc.). However, a slowdown does not mean industrial fundamentals are now weak. Compared to the anomaly…

“Industrial commercial real estate market is being driven by the rapid pace of consumerism.” We highly value the @SIORglobal broker network. It is an outstanding network of industrial focused brokers in all markets across the country. Enjoyed this Q&A with SIOR global president…

Scarcity of small industrial properties across the U.S. To show the tightness in this asset class, CoStar calculated - (i) availability < 50k sf (ii) median months to lease 10k-25k sf (iii) median months to lease <10k sf. • Small industrial fundamentals have been strong for…

Cost of industrial construction is up approximately 40% since 2019, per CBRE report. Cost inflation has generally settled from the peak. However, overall, costs are not projected to decrease, and near-term future cost growth is projected to be modest. Steel and concrete, the…

Announcement of more capital being allocated to net lease industrial, as institutional investors are forming new non traded REITs. Industrial sales as a percentage of total net lease sales has nearly doubled since 2019. • 2019: 22% • 2023: 37% The industrial asset class…

Seller financing white paper or deliverable recommendation? Sellers regularly ask about the benefit / impact to them when we ask if seller financing is something they would consider. Curious if anyone has seen a good, concise deliverable that we could share to supplement the…

Metal roof repair / replacement Improving a 45k SF metal IOS property in central Florida. Quotes/warranties: · 10-yr: Recoating = $4.25 - $5.25/SF · 20-yr: TPO overlay = $8.50 - $9.50/SF · 40-yr: Metal overlay = $9.00 - $13.00/SF Surprised a standing seam quote competitive to…

Broker predicted 2023 as a possible pivot point, in his local market, for the resilient industrial market and a potential downturn in 2024. He is now re-thinking that prediction based on “little evidence that demand for industrial space is weakening or new deliveries will…

Office demo -> Industrial development Office campus purchased in 2018, invested $15 million to renovate the property. 6 years later, demolishing the office buildings to build a new Class A industrial warehouse and distribution complex. Southern California is a unique market,…

Encouraging two months of activity in 2024 Q4 2023 felt like we were running into a brick wall and the activity level was discouraging to end a choppy year in 2023. However, January and February have been surprisingly active with a number of promising opportunities coming across…

Reshoring & Mega Projects Lead the Way - Enjoyed reading the Rental Equipment Register interview with Mig Dobre, Baird & Co. Interesting to track the health and growth of the construction industry as a substantial portion of industrial property users are significantly impacted…

The story of constrained industrial real estate supply (under 100,000 sf) told by two excellent visuals. Continued healthy demand and limited new supply create an opportunity to drive future rent growth, specifically for industrial properties under 100,000 sf. Chart 1 shows the…

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Industrial Vacancy Rates – Small Buildings vs. Large Buildings On the surface, industrial vacancy rates are up +/-200 bps, broadly, since lows in 2022. However, there is a growing dichotomy between the availability of small and large buildings. New construction deliveries,…

Despite rising vacancy rates, industrial asking rents increased in Q4 2023 Highlights • YOY asking rent growth: 6.0% • YOY taking rent growth 13.8% • Net absorption in 2023: Less than half of 2022 (239MM sf vs. 527MM sf) • Sublease availability: 178 million sf (highest since…