Wednesday, November 17, 2021
Tuesday, November 16, 2021
The Top 10 Markets for Investing in Smaller Industrial Properties
By Lauren Shanesy LoopNet
Industrial properties have emerged as a premier asset class with the surge in online shopping; e-commerce companies like Amazon are opening new distribution centers at an unprecedented pace. Chasing this swell in leasing and construction activity, international investment companies like Blackstone have made headlines by pouring more capital into the industrial space than ever before.
The industry was seeing a clear, strategic shift by institutional owners to prioritize industrial assets even before the pandemic. Since 2007, multi-asset investors owning more than $500 million of property have decreased their office ownership by 28% and increased their industrial share by 18%.
But with money rushing into the logistics sector from the world’s largest financial institutions, where should smaller investors looking to enter the space focus their attention?
Analyzing markets with an abundance of property sales priced under $20 million, CoStar's commercial real estate marketplace LoopNet, along with CoStar Analytics, developed a list of the top 10 markets that smaller investors should consider when purchasing industrial properties.
We based our analysis on three key factors for industrial investment:
Liquidity: The percentage of properties valued at less than $20 million that have sold since 2019.
Rent Growth: Year-over-year rent increases from the third quarter of 2020 to the third quarter of 2021.
Vacancy Rate: The portion of each market’s industrial inventory that is currently unoccupied (markets with low vacancy rates rank higher).
The 10 markets we selected are rife with opportunities, as a lot of them are located between major delivery ports for distribution access, yet removed enough from major markets to offer affordability. Moreover, that affordability will likely attract residents seeking a lower cost of living, leading to population growth and creating further demand for last-mile logistics facilities.
Based on our analysis, LoopNet identified these 10 markets as offering the most promising opportunities for smaller investors seeking industrial properties:
- Inland Empire, California
- Salt Lake City
- Phoenix
- Sacramento, California
- Philadelphia
- Atlanta
- Los Angeles
- Memphis, Tennessee
- Las Vegas
- San Antonio
Monday, November 15, 2021
Friday, November 12, 2021
Audubon Land Development buys Happy Days Farm in Exton for $18M
Natalie Kostelni Reporter Philadelphia Business Journal
Audubon Land Development has paid Nelson Realty Trust, an entity affiliated with Vanguard Group, $18.1 million for what is referred to as the Happy Days Farm, which fronts the Pennsylvania Turnpike and Route 100 in Exton, according to Chester County property records.
Records show that roughly 240 acres were purchased by the Lower Providence-based real estate company.
The Uwchlan planning commission has approved a plan in which Audubon Land will develop 1.93 million square feet of warehouse-distribution centers in three buildings and a 30-acre passive park with trails. Audubon Land told Uwchlan officials that work could begin on the largest of the buildings, a 1.1-million-square-foot structure, and the park in 2022.
Full story: https://tinyurl.com/5354djjv
Praxis Modular Opens Factory in Wilkes Barre
By Connor Steele CoStar Research
Praxis Modular has opened a volumetric modular factory in Wilkes Barre, Pennsylvania.
The company leased 275,000 square feet at the 1.06 million-square-foot facility at 1055 Hanover St. for its new factory. The factory is set to bring in 120 new jobs.
This is the largest volumetric modular factory in North America, Praxis said in a statement announcing its new facility. The 275,000-square-foot factory is four- to five-times larger than most modular manufacturers and the output will be five- to six-times greater than the conventional modular manufacturers, according to Praxis.
Praxis will produce wood, light gauge steel or structural steel modules for its projects throughout the Northeast at this location. The factory will feature two production lines and state-of-the-art technology, including automation and robotics.
