SECTOR WATCH: Distribution Centers & Warehouses
POISED FOR GROWTH
Demand remains extremely strong for the construction of warehouses and distribution centers, and that should continue in 2022, according to industry experts.
"We gad a record-breaking year [in 2021] for pretty much every fundamental we track: vacancy, rental rate growth, leasing activity, under construction," said James Breeze, global head of industrial real estate at CBRE, a Texas-based commercial real estate services and investment firm. "We do not see anything changing [this] year."
Not only does he anticipate the same level of activity in the sector as was seen in 2021, he expects vacancy rates to remain at historic lows, with rents contining to rise at a quick pace.
There is a steady flow of distribution and warehouse projects happening in early 2022, said Mike Jones, project executive at Pankow Builders, a California-based construction engineering company.
WHERE THEY'RE HAPPENING
Major transportation corridors near large metropolitan areas such as San Fransisco, Dallas, New York, Seattle, Miami, Houston and Chicao continue to be "hot markets for the distrbution and warehouse space." said Jones. Proximity to ports, airports, and trucking facilities are also underlying factors for determining where warehouse distribution facilities demand will continue to grow.
In addition to large projects, smaller buildings to support last-mile distribution are also needed. For example, dormant shopping center parcels are becoming an alternative for min-warehousing and last mile distribution facilities, whether by retrofitting a defunct department store or large parts of the shopping center parking lot.
HOW MBEX MEMBERS CAN BENEFIT
As of January 31, 2022, MBEX currently holds plans (by project category) for 10 Storage/Warehouse projects, 4 Retail Facility projects, and 6 Airport projects. Find them by doing a Quick Seach by key word inside the Online Plan Room, with terms such as "storage," "airport," and "warehouse," for example.
Read the full Sector Watch article on Construction Dive.