Despite these setbacks, there was a notable increase in the under-construction pipeline, which reached 4.5 million square feet as of January. The jump marked a significant increase from the previous January, when a single project measuring 300,000 square feet was underway.

Projects, such as Ely Lily and Co.’s campus at the LEAP Research and Innovation District in Lebanon, Ind., are helping to sustain the market’s pipeline. In May, the company announced an additional $5.3 billion investment, building on the $3.7 billion already committed.

Later in the year, the firm revealed plans for the $4.5 billion Lily Medicine Foundry, the first facility to integrate research and manufacturing. These developments are keeping the market afloat and demonstrate a commitment to innovation and growth.

Smallest development pipeline among peer markets

Indianapolis’ industrial sector had nearly 4.5 million square feet under construction at the end of 2024, according to CommercialEdge data. These projects accounted for 1.2 percent of the market’s total inventory, slightly below the national average of 1.7 percent.

Compared to its peers, Indianapolis had the smallest amount of space underway. Phoenix ranked first with 22.3 million square feet, followed by Dallas (18.9 million square feet) and Houston (12.4 million square feet).

Early last year, Simtra BioPharma Solutions announced an expansion exceeding $250 million for its sterile fill/finish manufacturing campus in Bloomington, Ind. The new 150,000-square-foot facility is expected to be operational by this summer.

Another facility that is expected to come online this year is Sephora’s build-to-suit distribution center in Avalon, Ind. Developed by VanTrust Real Estate, the 746,672-square-foot facility broke ground last year and is part of the firm’s Avon Landings Commerce Park.

Completions remain below national figures

In 2024, Indianapolis had 6.1 million square feet in industrial completions across 13 properties, accounting for about 1.6 percent of total stock. This figure was below the national average of 1.9 percent.

Among its peer markets, Indianapolis had the least amount of new industrial space delivered last year. Phoenix led with 36 million square feet, followed by Dallas with 27.6 million square feet and Chicago with 14.9 million square feet.

Deliveries are expected to remain steady in 2025, as 4.2 million square feet of industrial space broke ground last year and are slated for delivery.

This quarter, Ambrose Property Group completed Building III, a 233,000-square-foot facility in Whitestown, Ind., within the Indianapolis Logistics Park Northwest. The first phase of the campus will comprise three buildings totaling more than 700,000 square feet.

Indy asset prices less than half the U.S. average

In 2024, the Indianapolis industrial real estate investment volume amounted to $320.7 million in sales from the 46 assets totaling 4.4 million square feet that changed hands. This placed the metro behind all its peer markets.

On average, Indianapolis assets traded for $73 per square foot, significantly lower than the national average of $167 per square foot. The Bay Area recorded the highest sale prices nationally at $414 per square foot, followed by Orange County ($314 per square foot) and Los Angeles ($294 per square foot).

In January, Libitzky Property Cos. acquired Park 130 @ Whitestown Building 3, a 319,336-square-foot facility in Whitestown, for $28.4 million. Sold by EQT Exeter, the property houses a distribution center operated by Frito-Lay.

Vacancy rates continue to rise

As of January this year, Indianapolis’ average industrial vacancy rate stood at 9.1 percent, marking a 650-basis-point increase from the previous year. This rate was also 1.1 percent higher than the national average. Among its peers, Orange County (5.0 percent) posted the lowest figure, followed by Atlanta (7.2 percent) and the Inland Empire (7.9 percent).

In May, Cummins Inc. leased a 1.1 million-square-foot building at Mohr Logistics Park, a 475-acre industrial campus. Mohr Capital completed the building in 2023.

As of January, the average listing rate within the Indianapolis metro was $4.9, notably lower than the national average of $8.4. Among peer markets, Orange County ($16.6) had the highest rate, trailed by Los Angeles ($15) and the Bay Area ($13.5).

The post Indianapolis Industrial Sector Fell Short in 2024 appeared first on Commercial Property Executive.

Back in 2007, Peter Ciganik joined GTIS Partners, which was then a two-year-old real estate investment management firm. Fast forward to 2025. GTIS is marking its 20^th anniversary, it now manages $4.7 billion in assets and Ciganik himself is the company’s head of capital markets, handling a wide range of responsibilities.

In this episode, you’ll get an insider’s view of the factors shaping the real estate capital markets in these highly fluid conditions.

Offering insights into the industrial sector, Ciganik comments on the shifting supply-demand dynamic, the types of properties GTIS finds especially attractive and a region that offers standout potential.

He discusses why build-to-rent residential figures prominently in the company’s investment strategy. And on a personal note, you’ll hear about a favorite pastime that keeps this executive on the go.

In college, Peter pursued his lifelong enthusiasm for architecture and art history. Maybe those topics seem a little removed from his executive duties today, but they still contribute to his perspective.

As he puts it: We spend a lot of time thinking about the right designs, the right location and the right product.

Episode highlights:

• Capital markets indicators to watch in ’25, plus a trend that bucks the norm (1:35)
• Will industrial continue to be a strong performer? (5:37)
• Where to find the most attractive industrial markets now (8:17)
• Finding financing: a big improvement and the biggest challenge (12:13)
• How BTR fits into GTIS’s strategy (13:38)
• “Something is not quite right with the for-sale market” (17:19)
• Origin story of a CRE investment and finance career (23:27)
• How design informs his perspective on investment (25:24)
• Executive off the clock: Discovering destinations around the globe (26:59)

Follow, rate and review CPE’s podcasts on Spotify and Apple Podcasts! 

The post Investment Matters: Navigating CRE’s Fluid Capital Markets appeared first on Commercial Property Executive.

These properties make up 53.5 percent of the total U.S. industrial inventory, equating to 10.7 billion square feet, according to CommercialEdge. Their appeal has only grown in recent years, particularly following the sharp decline in vacancy rates and surging rental costs post-2021.

“This pricing pressure pushed many users out of Class A availabilities, resulting in Class B properties achieving the lowest vacancy levels among all building classes,” said Tom Harmon, vice president of transactions at Bridge Industrial. “Vintage buildings play a pivotal role in the industrial real estate landscape, offering cost-effective options to occupiers while being situated in highly desirable locations near densely populated areas.”

READ ALSO: Emerging Industrial Markets in the US

One particular segment of the Class B industrial market that performs exceptionally well is shallow bay industrial properties. These assets have remained highly sought-after, especially among last-mile users and small- to mid-size tenants, while larger industrial facilities from the 1980s and 1990s sometimes struggle to compete with modern developments. JLL reports that buildings from this era make up 25 percent of the nation’s industrial stock, with around 30 percent classified as shallow bay.

“You might be surprised to learn that the vacancy rate in this cohort is lower than the overall industrial vacancy rate—approximately 4.5 percent compared to 7.1 percent,” said Trent Agnew, JLL Capital Markets industrial co-lead & senior managing director.

While modern facilities prioritize higher ceilings, more docks and increased power capacity, shallow bay assets thrive due to their flexibility and prime infill locations, making them a competitive alternative to newer developments.

Staying in the game

To prove their enduring relevance, Class B industrial properties are adjusting to evolving tenant needs. Their appeal lies in a combination of strategic locations and modernization potential.

Enhancements such as high-efficiency HVAC systems, LED lighting and energy-efficient roofing improve sustainability and reduce operational costs, while also playing a crucial role in maintaining the assets’ competitiveness. Other capital improvements like additional loading docks, reconfigured layouts and modernized fire suppression systems significantly boost both functionality and market appeal. Expanding docking facilities and increasing parking capacity further enhance these facilities’ suitability for a multitude of businesses, including logistics-focused tenants.

But beyond any physical upgrade, location remains a key demand driver.

“Properties in high-barrier-to-entry infill locations continue to be sought-after, and there is no indication that this trend will change,” Harmon believes. “Time and time again, occupiers have demonstrated their willingness to compromise on features such as lower clear heights or tighter truck courts to secure a location they consider ideal.”

Among those occupying Class B assets today are manufacturers, e-commerce businesses and last-mile delivery services—sectors that benefit from the accessibility and distribution efficiency these properties offer, according to Erik Foster, principal & leader of U.S. Industrial Capital Markets at Avison Young. The 12th annual U.S. Industrial Tenant Demand Study by JLL further underscores growing demand for manufacturing facilities, signaling a shift in industrial activity and an uptick in domestic production.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Class B industrial assets’ adaptability also makes them attractive to non-traditional tenants. Toby Nelson, vice president of leasing at The Silverman Group, believes their flexibility is drawing in tech firms, medical labs and restoration businesses, and even unconventional occupiers like churches.

“These properties remain competitive by focusing on what they do best—offering flexibility and affordability,” Nelson said. “As long as these buildings are well-maintained and adapted to today’s needs, they’ll continue to hold their own in the market.”

This is especially true as many tenants now seek spaces that integrate office areas with manufacturing, storage or showroom functions. Demand is also growing for facilities that can accommodate specialized uses such as laboratories or small-scale production.

Relevancy vs redevelopment: a balancing act

Class B industrial assets are at a crossroads in today’s rapidly evolving logistics and e-commerce landscape. While their strategic infill locations make them highly valuable for last-mile distribution, many lack the modern infrastructure tenants now require. So many investors and owners need to decide what offers them the greatest advantages: upgrading existing structures or pursuing full-scale redevelopment.

The decision to modernize a Class B facility rather than redevelop it depends on multiple factors. While retrofitting older properties with modern HVAC systems, LED lighting and additional loading docks can improve efficiency and keep costs lower than new construction, in certain scenarios, demolishing existing structures to construct modern assets on premium sites may yield better investment returns.

“If redeveloped, these properties would likely be turned into highly efficient, multistory logistics hubs,” Foster said.

In high-barrier-to-entry locations, where new development is expensive and time-consuming, renovations are a more practical option.

“Many older buildings have good bones and layouts that can be updated for modern tenants without starting from scratch,” Nelson pointed out. “In tight markets or areas with zoning restrictions, upgrades can also save a lot of time.”

Looking ahead, Class B industrial properties will likely remain integral to the logistics ecosystem. Their cost-effectiveness, prime locations, and potential for innovative redevelopment render them attractive in the long term. Additionally, with industrial investment projected to regain momentum in 2025, demand for well-positioned Class B spaces is anticipated to rise.

Concurrently, sustainability concerns and technological advancements are expected to further drive modernization efforts, compelling investors to balance immediate costs with long-term gains in property value and tenant satisfaction.

The post How Is Class B Industrial Adapting to Modern Demand? appeared first on Commercial Property Executive.

Ambrose has closed its fourth fund at $400.6 million—its largest investment vehicle to date. Ambrose IV will target build-to-suit and speculative developments, as well as acquisitions of industrial, logistics and e-commerce assets throughout the U.S.

Focusing primarily on the Midwest, Mountain States and the Southeast markets, the investment vehicle is already roughly 50 percent deployed. Thus far, proceeds from Ambrose IV have kicked off 12 industrial projects throughout Florida, Louisiana, Indiana and Ohio.

The fund also acquired a three-building portfolio in Denver and purchased four land parcels across Ohio and Indiana, with plans to develop six industrial projects.

READ ALSO: 5 Trends Defining CRE Development in 2025

The decrease in new construction due to high interest rates and capital constraints backs up Ambrose’s investment strategy, according to a company statement. Additionally, the company banks on the increasing absorption of the pandemic-era industrial development glut and the growing demand for well-located industrial, logistics and e-commerce product.

Ambrose IV’s investor base includes a mix of public pension funds—such as Indiana Public Retirement System, which committed $100 million—and insurance companies, as well as family offices.

Ambrose’s industrial endeavors

Ambrose has completed 61 industrial projects valued at $2.9 billion since 2020. The company also owns entitled land for new developments, capitalizing on the warehousing, manufacturing and data center demand.

Some of Ambrose’s projects currently underway are in Florida. In Orlando, Fla., Ambrose is developing Orlando Logistics Park at LeeVista, a three-building, 673,000-square-foot industrial project. The first building, which measures 103,000 square feet, is slated for completion this April.

The company teamed up with Helms Development to construct Alico ITEC Logistics Park, a two-building, 380,000-square-foot industrial project in Fort Myers, Fla., which is part of the Southwest Florida Coast market. The region was featured in Commercial Property Executive’s U.S. Emerging Industrial Markets.

Ambrose is also an active player on the industrial real estate investment scene. Last October, the company paid $61 million for Ascent Commerce Center, a three-building asset totaling 595,000 square feet in Denver.

The post Ambrose Closes Largest Fund at $400M appeared first on Commercial Property Executive.

The deal consists of two loan pools involving regional portfolios that together total 30 IOS assets nationwide. The properties are geographically diversified across the company’s target markets, in infill locations near major transportation corridors.

Justin Horowitz of Cooper Horowitz LLC, a family-owned capital advisory firm that specializes in debt and equity placement across multiple types of real estate nationally, arranged the financing.

In August, Zenith formed a $700 million joint venture with institutional investors advised by J.P. Morgan Asset Management, focused solely on IOS properties in the U.S. It was the duo’s second such partnership, as they previously joined forces in 2022 for a similar endeavor.

Surge in activity

The IOS sector has been notably active over the winter, with multiple sizable deals.

In February, Alterra IOS closed on a $189 million loan from Blackstone Mortgage Trust Inc. The financing backed 49 IOS sites totaling 235 acres across 22 states, all acquired through the Alterra IOS Venture III fund. The Blackstone note brought the fund to more than $1 billion in total financing.

Just a month earlier, Alterra had acquired four IOS properties in the Dallas–Fort Worth metro. The sellers and prices were not disclosed.

And shortly into the new year, Brookfield Asset Management sold a 13-property, 631,600-square-foot IOS portfolio to Realterm for more than $277 million. The properties are located in seven key logistics markets, including the Inland Empire, Chicago, Seattle, Northern New Jersey, the Bay Area and Orlando.

The post Zenith IOS Lands $120M for 2 Portfolios appeared first on Commercial Property Executive.

Leon Industrial, a Leon Capital Group subsidiary, has paid $11.5 million for a 120,000-square-foot industrial property in Rock Hill, S.C. Graham Capital sold the asset, while Avison Young brokered the transaction on its behalf and will also provide leasing services for the new owner.

Leon Industrial will implement a substantial improvement and renovation program at the Class B facility to attract tenants in need of small-bay space.

Measuring nearly 8 acres, the property includes one grade-level door, 10 dock-high doors and two exit ramps—with a third one under construction. Leon Industrial’s upcoming changes will include an upgraded exterior, lighting and parking space enhancements.

The 1974-built facility is at 2690 Commerce Drive, near Interstate 77. Charlotte is 23 miles from the property while Charlotte Douglas International Airport is within 25 miles.

This is the Texas-based buyer’s first acquisition in metro Charlotte, N.C. Leon seeks to further expand in the Southeast region and has recently established its Charlotte office, according to Charlotte Business Journal. The asset is fully vacant, the same source shows. It last changed hands for $10 million in 2022, CommercialEdge information shows.

Avison Young Principals Chris Loyd and Tom Tropeano, together with Vice President Ryan Kendall worked on behalf of the seller and will provide leasing services on behalf of the new owner.

Charlotte’s affordable industrial product

Industrial sales volume in Charlotte reached $1.5 billion in 2024, a recent CommercialEdge report shows. Assets changed hands at an average of $89 per square foot—the lowest among Southern markets. The national average stood at $129 per square foot. As of January, Charlotte’s 7.4 percent vacancy rate was one of the lowest in the region, surpassed only by Houston (6.5 percent) and Nashville, Tenn. (6.8 percent). The national figure stood at 8 percent.

A recent notable acquisition for the metro was Stonelake Capital’s $13.5 million deal. The company picked up a 123,140-square-foot, fully leased facility from Steins Fiber. Avison Young also brokered this deal on behalf of the buyer.

The post Leon Industrial Enters Charlotte With $12M Purchase appeared first on Commercial Property Executive.

Lincoln Equities Group has signed a 109,450-square-foot long-term lease at its Lincoln Logistics Rockland, an industrial facility in Valley Cottage, N.Y.

The tenant is National Ramp, a residential and commercial modular ramping provider, that increased its footprint in Rockland County and will use the space to form a new corporate headquarters. JLL’s Executive Managing Director James Panczykowski represented the ownership and facilitated this transaction.

Lincoln Logistics Rockland is a recently completed, Class A distribution center that includes 220,000 square feet. The property is close to White Plains, N.Y., a suburban hub north of New York City that ended last year among the top emerging industrial markets in the U.S. for its development activity and high property values.

Located at 625 Corporate Way, the facility is close to Interstate 287, as well as to Palisades Interstate Parkway. Additionally, the Port of Newark-Elizabeth and major airports such as John F. Kennedy International Airport and Newark Liberty International Airport are within a 45-mile radius of the property.

Lincoln Logistics Rockland features 36-foot clear heights, 34 dock doors, two drive-in doors, a built-to-suit office component, 123 vehicle parking spots and 41 trailer parking spots. The property can also include expansion options of up to 55 dock doors and 53 trailer parking spots. The remaining 110,550 square feet are available for lease.

Deals and projects of two longtime partners

Lincoln Equities Group delivered the building with capital partner PCCP LLC and with construction funds totaling $37.7 million, secured in the form of a bridge loan originated by Principal Financial Group, according to CommercialEdge.

Meanwhile, the duo has a 204,407-square-foot industrial project currently underway in the area. Situated 30 miles from Lincoln Logistics Rockland and known as Belleville Logistics, the two-building industrial project is rising at 681 Main St. in Belleville, N.J. The partnership landed a $53.5 million senior construction loan for the development in April last year.

Lincoln Equities Group and PCCP LLC partnered for the first time in 2021, when they purchased a three-building industrial portfolio in the same area. Just last month, the partners sold off the 261,950-square-foot asset in a $62.8 million deal.

The post Lincoln Equities Inks New York Industrial Lease appeared first on Commercial Property Executive.

The portfolio consists of two industrial parks. Linden Business Center is at 7245-7795 Coppermine Drive. The 109,809-square-foot property was built in 2001 and currently has nine tenants. Gateway Centre is at 7201-7401 Gateway Court. The 102,277-square-foot property was built in 1988 and currently has eight tenants.

Gateway & Linden is near the heart of the nation’s No. 2 hub for data center real estate absorption, according to CBRE’s data center trends report, where high-quality industrial flex assets are becoming increasingly scarce.

The buildings are positioned to serve warehouse users supporting the data center industry and the 8.5 million square feet of data center space currently there. Data center real estate within Prince William County is estimated to increase to 80 million square feet over the next decade.

READ ALSO: Manufacturing Surge Drives Industrial Expansion

Essential roadways Route 29/I-66 corridor, Interstate 66, Prince William Parkway and Balls Ford Road are conveniently close to the Gateway & Linden portfolio.

A supply-constrained market

There are only 188,000 square feet of overall industrial product currently under construction, all scheduled to deliver during the first half of 2025, according to CBRE’s Northern Virginia fourth-quarter industrial report.

Nothing broke ground in Northern Virginia in the fourth quarter. Several Class A properties are expected to begin construction in early 2025.

“This acquisition of Gateway & Linden secures a prime industrial asset in Northern Virginia where industrial-zoned land is rapidly becoming scarce and existing properties are redeveloped for other uses,” Lauren Kowall, senior vice president of investments at Penzance, told Commercial Property Executive.

“Our strategy focuses on transforming vacant office-heavy spaces into higher-demand industrial facilities, positioning the property to capitalize on the growing need for warehouse space amid increasing challenges to new industrial development.”

JLL’s Mid-Atlantic Capital Markets team, including Bill Prutting, Craig Childs and Chris Dale, were the sole advisors on the sale transaction. JLL’s metro D.C. industrial team will lead leasing.

“Manassas stands out as a unique industrial market facing a shrinking supply of traditional industrial space, driven by the unprecedented surge in data center development over the past three years,” Prutting told CPE.

“This trend has significantly increased the long-term value of properties like Gateway & Linden, as long-established regional tenants seek new locations due to the redevelopment of their current sites.”

The post Penzance Pays $55M for Northern Virginia Portfolio appeared first on Commercial Property Executive.

Lovett Industrial has entered the Nashville market with the purchase of 10.4 acres in Hendersonville, Tenn. This swath of land will be the development site of Innovation Way Logistics Center, a 107,500-square-foot industrial property.

Powers Brown Architecture is the lead architect, while Kimley-Horn serves as the project’s civil engineer. Groundbreaking is scheduled for July 2025 and delivery is expected in June 2026.

Carrying the address 230 Innovation Way, the site is along New Shackle Island Road, offering direct access to Interstate 65 and U.S. Route 31E. Nashville International Airport is some 21 miles south.

Upon delivery, Innovation Way Logistics Center will be a rear-load building with a clear height of 32 feet and 215 feet in depth, having 29 dock-high doors and two drive-in doors. The property will also feature a 130-foot truck court and 120 parking spaces. Stream Realty Partners’ Griffin Farriss, Bradley Worthington and Andrew Fletcher will handle marketing and leasing.

READ ALSO: Manufacturing Surge Drives Industrial Expansion

The Nashville industrial real estate market had a decent 2024, according to fourth-quarter report from Colliers. The sales volume exceeded $1.4 billion, marking a 37 percent year-over-year increase.

Meanwhile, industrial space absorption totaled nearly 4.3 million square feet, and 4.0 million square feet were delivered, though that caused a slight bump in overall vacancy, to 4.1 percent. Almost 4 million square feet of industrial space were under construction as of the end of December, according to Colliers.

Lovett’s recent activity across the U.S.

Lovett has been active across a wide swath of the country in recent months:

•  In July, the company obtained entitlements for the development of a 298,000-square-foot facility in Chino, Calif., in the Inland Empire West submarket. Construction was scheduled to start in the fourth quarter of 2024.

•  The following month, Lovett delivered Broadway Logistics Center, a 201,329-square-foot Class A industrial building in Denver. Cushman & Wakefield was assigned to lease the spec project.

•  In October, Lovett broke ground on Highway 1 Commerce Center, a Class A spec last-mile logistics project in Philadelphia. The warehouse is slated for delivery by the third quarter of this year.

•  And in December, the developer broke ground on a 339,280-square-foot Class A logistics park in the Dallas-Fort Worth area. This project’s completion is also expected in the third quarter.

The post Lovett Industrial Enters Nashville Market appeared first on Commercial Property Executive.

Nuveen has signed a 168,741-square-foot lease at its industrial facility in Monee, Ill., within Chicago’s Southern Will County submarket. NewAge Products joined the roster, bringing the property to full occupancy.

Seefried Industrial Properties developed the 621,246-square-foot asset. Cushman & Wakefield brokered the deal on behalf of both parties.

Reynolds Consumer Products is the other tenant at 25100-25340 S. Ridgeland Ave., occupying 452,505 square feet.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The building has 40-foot clear heights, 26 exterior docks, two drive-in doors, ESFR sprinkler systems, LED lighting with motion sensors and cross-dock configuration. Additional features include a 2,555-square-foot office component, 139 vehicle parking spots and 46 trailer parking spots, which can be expanded to 96.

The asset provides access to major transportation corridors that connect to the wider Chicago metro area and the Midwest, such as interstates 57, 80 and 294. Union Pacific Global IV Intermodal Terminal, BNSF Intermodal Yard and the Canadian National Intermodal Terminal are within 20 miles.

Cushman & Wakefield’s Executive Vice Chairman Jason West worked on behalf of NewAge Products, while the company’s Vice Chairman Sean Henrick and Managing Director Ryan Klink represented the landlord.

Chicago’s industrial vacancy lagged other Midwest metros

Industrial vacancies increased in nearly every market over the past two years due to a large amount of new supply. As of January 2025, the national industrial vacancy rate clocked in at 8 percent, unchanged from the previous month, a recent CommercialEdge report shows.

Chicago’s vacancy clocked in at 10 percent in January—one of the highest in the nation and the only Midwestern market that fared worse than the national average. The metro’s rate had increased 530 basis points year-over-year, the same source shows.

Earlier last month, Seefried Industrial Properties was involved in another deal in the area. The company signed a 152,014-square-foot lease with nonprofit David C. Cook at its 1700 Madeline Lane Facility in Elgin, Ill.

Also in February, CenterPoint Properties landed an approximately 1 million-square-foot deal with 3PL firm RJW Logistics in Joliet, Ill. The tenant signed a full-building agreement at 2903 Schweitzer Road, within CenterPoint’s 6,400-acre Intermodal Center.

The post Nuveen Inks 169 KSF Chicago-Area Industrial Lease appeared first on Commercial Property Executive.

The South region continued to showcase its industrial strength, driven by robust sales activity and impressive growth, positioning key metros as leaders in the nation’s industrial landscape. In 2024, Charleston, S.C., saw $345 million in industrial sales, while El Paso, Texas, led in year-over-year pricing growth—145 percent. In South Florida, West Palm Beach-Boca Raton topped the list with $418 million in sales. While markets like Memphis, Kansas City and Savannah have transcended emerging market status, with inflated pipelines and enduring interest, the markets on this list have the makings of potential and solid economic indicators. They also reap the benefits of strong positioning near growing ports or spillover effects.

Smaller markets like Boise, Des Moines, and Tucson are also making strides, with business relocations and affordable pricing boosting demand. Meanwhile, the Tri-Cities region in Tennessee stands out with 3.9 percent job growth, strengthening its industrial footprint. These markets are uniquely positioned for sustained growth, backed by a mix of favorable economic conditions and strategic investments. By tapping into the latest insights from CommercialEdge data, we explore the evolving roles these regions are playing in shaping the nation’s industrial landscape. Here are our 10 emerging industrial markets this year:

Charleston, S.C.

Charleston continues to cement its status as an emerging industrial market, driven by robust construction activity and surging investor interest. As of late 2024, the market had more than 2.7 million square feet of industrial space underway across 10 properties, accounting for 3.3 percent of total stock, CommercialEdge data shows. The metro’s strength lies in its strategic position along the East Coast, with direct access to the Port of Charleston—one of the fastest-growing ports in the U.S.

Major industrial players such as Volvo, Bosch or Mercedes-Benz have expanded their footprint in the area throughout recent years, further solidifying its status as a manufacturing hub. Despite a slight dip in pricing, Charleston remains a hotbed for industrial transactions, with total sales surpassing $345 million in 2024 at an average price of $117.16 per square foot. A 3.5 percent annual job growth rate further underpins its expansion.

El Paso, Texas

With a flourishing industrial sector and rising investor confidence, El Paso is swiftly emerging as a key logistics and manufacturing hub. According to CommercialEdge data, the market recorded 2.6 million square feet of industrial space under construction at the end of 2024, or 9 properties, representing 3.6 percent of its total inventory. Its advantageous location on the U.S.-Mexico border fuels cross-border trade, attracting major tenants from the automotive, electronics and food processing industries.

The market also boasts one of the strongest pricing growth trajectories, with a 145 percent year-over-year increase in price per square foot—the highest percentage among the top emerging markets—reaching an average of $44.24 at the end of December 2024. Job growth also remained positive, up 1.1 percent year-over-year. This combination of affordability, location and infrastructure investment positions El Paso as a high-potential market for continued industrial growth.

White Plains, N.Y.

The suburban hub just north of New York City is carving out a strong niche as one of the emerging industrial markets in the nation. The market had 9 properties totaling nearly 2.7 million square feet underway at the end of December 2024, accounting for 2.9 percent of total stock, with ongoing projects focused on modern distribution centers catering to last-mile logistics demand.

White Plains stands out for its high property valuations, averaging $126.28 per square foot—one of the highest among emerging industrial markets. Additionally, the market saw a 43.3 percent year-over-year increase in pricing, signaling steady investor confidence despite broader economic uncertainty.

With its proximity to major urban centers, White Plains continues to attract investments from major firms such as Amazon and FedEx, which are expanding their logistics operations in the area. While job growth in the region was more moderate (0.6 percent year-over-year), the area benefits from a highly skilled workforce and access to one of the largest consumer bases in the country.

Southwest Florida Coast

The region has been establishing itself as a dynamic emerging industrial market for a while now, propelled by strong investment activity and an active pipeline. In 2024, Southwest Florida Coast’s industrial sales totaled more than $311.7 million, with an average price per square foot of $134.40, CommercialEdge data shows. This robust investment is supported by a growing population, increasing demand for distribution hubs and ongoing infrastructure improvements.

Industrial development within the market remained strong all throughout 2024, with 1.5 million square feet under construction at the end of the year, or 2.4 percent of stock, primarily concentrated in logistics and light manufacturing projects. Retail logistics companies such as Publix and Walmart have been expanding their distribution operations in the region, capitalizing on Florida’s growing consumer demand. Despite its smaller job growth rate—0.5 percent year-over-year—the area continues to attract businesses seeking proximity to Florida’s expanding consumer markets.

Boise, Idaho

Boise’s industrial market has been steadily gaining momentum, driven by a surge in new residents and business relocations. The sector is evolving with a healthy balance of construction activity and pricing growth. In 2024, the metro saw consistent development, with six properties totaling 1.2 million square feet underway at the end of the year, or 2.6 percent of stock, to meet rising demand from the logistics, tech and food processing industries.

Although investment activity slowed last year, assets traded at an average of $149.21 per square foot, offering strong value compared to larger West Coast markets. Major employers like Albertsons and Micron Technology continue to expand their footprint, fueling further demand. While pricing growth remained moderate at 22.4 percent year-over-year, Boise’s job market continues to strengthen, bolstered by a 2.9 percent rise in industrial employment.

West Palm Beach-Boca Raton, Fla.

The region is experiencing a surge in industrial expansion, fueled by South Florida’s thriving economy and growing e-commerce demand. CommercialEdge highlights that in 2024, West Palm Beach-Boca Raton led all markets in industrial sales, surpassing $418 million, with properties trading at an average of $224.13 per square foot—still more affordable than high-priced markets like Brooklyn, Queens and San Francisco.

However, industrial development has slowed compared to previous years, with just 130,000 square feet across three properties in the pipeline as of the end of 2024, primarily catering to logistics, distribution and light manufacturing tenants. While job growth has been modest at 0.9 percent year-over-year, the metro benefits from a diverse business ecosystem and steady population growth, sustaining long-term demand and cementing its status as an emerging industrial market.

North Central Florida

North Central Florida’s industrial market is gaining traction as a vital logistics hub, capitalizing on its central location and easy access to major highways connecting the state’s key metros. In 2024, industrial development remained steady, with three projects totaling 1.1 million square feet under construction by December’s end, mainly focused on distribution centers and light manufacturing. This growth accounted for 2.1 percent of the region’s total industrial inventory.

Investment activity was robust, with industrial sales reaching $108.6 million and property values soaring 141.4 percent year-over-year to an average of $45.05 per square foot. Companies like PepsiCo and Sysco continue to expand in the region, drawn by its strategic advantages and affordable operating costs. While job growth held steady at 0.4 percent, the continued expansion of industrial space reinforces the region’s long-term growth prospects.

Tucson, Ariz.

Tucson’s industrial sector is holding strong, fueled by its strategic location near the U.S.-Mexico border and a booming manufacturing base. According to CommercialEdge, development activity in 2024 remained steady, with four properties totaling 715,000 square feet under construction by year’s end, primarily catering to logistics and aerospace tenants.

The market saw robust investment, with industrial sales approaching $135 million by the close of 2024. Pricing remains competitive, with properties trading at an average of $99.98 per square foot, positioning Tucson as an appealing alternative to more expensive markets. The market experienced a 29.6 percent increase in pricing year-over-year, indicating sustained investor confidence, while job growth stayed positive at 1.1 percent.

Des Moines, Iowa

Des Moines is quietly emerging as a key industrial hub in the Midwest, driven by its robust transportation infrastructure and business-friendly environment. The metro maintained a strong development pipeline in 2024, with 1.5 million square feet across four properties underway, primarily serving distribution and light manufacturing tenants.

Investment activity remained stable, with industrial sales totaling $52.9 million, while property values rose 16.1 percent year-over-year to an average of $81.30 per square foot. Major companies like John Deere and Amazon continue to expand their footprint, further fueling industrial demand. Des Moines also saw steady job growth, with employment rising 1.8 percent year-over-year, reinforcing the metro’s sustained industrial momentum.

Tri-Cities. Tenn.

The Tri-Cities region in Northeast Tennessee is gaining recognition for its gradual industrial sector expansion, supported by its strategic location along key transportation corridors. By the end of 2024, industrial development included one property totaling 481,000 square feet, representing 1 percent of the metro’s total inventory.

Industrial sales in the region reached $118.7 million, with properties trading at an average of $115.85 per square foot. Despite a slight dip in pricing, the job market remains strong, with a 3.9 percent year-over-year increase in employment—the second-highest among similar markets. Leading employers like Eastman Chemical and FedEx Ground are expanding their logistics networks, further strengthening the region’s prospects for sustained industrial growth.

Methodology

The methodology behind the Top 10 Emerging Industrial Markets ranking leverages data from CommercialEdge, complemented by an analysis of the U.S. Census Bureau’s annual employment growth rate. Our rankings are determined based on metrics recorded up until December 2024.

Factors considered in our methodology encompass the volume of industrial construction underway, industrial sales volume for the year 2024, pricing per square foot, the annual change in price per square foot and job growth specific to the industry. We believe this ranking methodically balances the considerations of growth potential and the overall size of the market.

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The industrial sector has proven itself to be a highly resilient asset class that has continued to draw investor interest, even over the turbulent past few years for commercial real estate. While transactions remained at nearly a standstill for the majority of 2024, there was steady demand for well-positioned industrial assets.

Industrial is appealing to investors seeking a hedge against inflation to preserve capital. While still elevated slightly from their historic lows, cap rates are compressed, with most transactions closing at sub-5 percent cap rates in prime markets. It was also the only major product type to see a decrease in loan delinquencies in the fourth quarter, a further testament to the sector’s stability through an evolving economic landscape and unprecedented global events.

READ ALSO: Capital Ideas: Gold Card Plan Can’t Trump EB-5

Yes, there have been persistent headlines of oversupply and softening demand in Los Angeles County and the Inland Empire and attention being driven toward emerging markets in the Southeast and Midwest. That said, Southern California and other Western markets remain critical hubs of commerce and logistics that will continue to benefit from the same demand drivers and fundamentals that have historically propelled these regions. In fact, there are emerging submarkets within these regions with strong growth potential that are attracting businesses, developers and investors alike.

Strong outlook for demand drivers

Even in the face of a new administration and geopolitical uncertainty, Western markets in particular remain a key hub for both global and domestic commerce. In 2024’s fourth quarter, year-over-year volume at Southern California’s San Pedro Bay Port Complex (home to the ports of Los Angeles and Long Beach) was up 19.5 percent, according to Freightos data, and costs per container from East Asia to the West Coast declined 13 percent.

While some investors are still hesitant to make moves amid headlines of rising vacancies resulting from significant deliveries, strong absorption rates indicate that these will likely begin to fall again in 2025. In fact, throughout the Inland Empire, average gross and net absorption rates were up in the fourth quarter as a result of stronger demand.

From an overall economic standpoint, higher employment rates and improving sentiments are signs we will see industrial users making moves. This will create ample opportunity, as many tenants are poised to strategically navigate their own growth and invest in their supply chains this year. At DAUM, we’ve assisted several companies, including retailers and distributors, with expansions this past year and expect this kind of activity to continue.

Opportunities in emerging submarkets

We’re even seeing new and planned construction of state-of-the-art distribution centers and mega-warehouses in historically underutilized areas of the Inland Empire and Los Angeles County that still have ample developable land.

One example of this is L.A. County’s Antelope Valley, which is located just an hour from the ports, north of the city of L.A. and just west of the Inland Empire. With growing business and residential populations, an educated workforce and a business-friendly government, it is poised to continue attracting businesses and represents an area of industrial growth and fertile ground for investment.

Industrial users, including logistics firms and manufacturers, are attracted by the region’s affordability, given that rental rates remain high in submarkets near downtown Los Angeles. Additionally, drayage costs to the Antelope Valley are the same as to Beaumont and Banning and lower than the High Desert, Tejon and the Central Valley.

In fact, DAUM agents recently arranged the sale of 68.5 acres of land in Lancaster—fully entitled for a 1.26 million-square-foot distribution center—to Amazon.

Especially as the logistics industry continues to increase its capabilities of next- and same-day delivery, there remains strong demand for quality industrial space near key population and transportation hubs.

Rick John, SIOR, is executive vice president at DAUM Commercial Real Estate Services.

The post Why SoCal Industrial Still Yields Opportunities appeared first on Commercial Property Executive.

Construction spending for the sector has tripled since 2021, driven by reshoring efforts, national security concerns and government incentives supporting domestic production of EVs, batteries, semiconductors, as well as clean energy technology.

This manufacturing investment is expected to have a lasting impact on industrial real estate, with the multiplier effect generating millions of square feet in supplier and logistics developments. In the Savannah–Hilton Head market, Hyundai’s $5.9 billion, 17 million-square-foot EV plant has already attracted suppliers like Daechang Seat Co. and Ecoplastic Corp.

However, the sector faces challenges, including land, water and power constraints, labor shortages and potential trade disruptions. Tariffs and trade policy shifts could impact firms that have nearshored operations to Mexico or rely on exports, adding uncertainty to the industry’s long-term outlook.

READ ALSO: Manufacturing Demand for Industrial Space Is Mushrooming

As of January, the under-construction pipeline included 346.2 million square feet of industrial space nationwide, accounting for 1.7 percent of the total inventory, according to CommercialEdge data. The Southeast has seen a surge in manufacturing development, with nearly 2 million square feet of Charlotte’s pipeline dedicated to this sector—one-third of all space under construction in the market.

Phoenix had the highest share of industrial space under development, with 4.1 percent of its inventory—17.6 million square feet—underway. Other active markets included Memphis, Tenn. (3.9 percent or 11.7 million square feet), Kansas City, Mo. (3.8 percent or 11.2 million square feet), Denver (2.4 percent or 6.8 million square feet), and Dallas-Ft. Worth (2.3 percent or 22.5 million square feet).

Industrial sales in January reached $69.2 billion, with properties trading at an average price of $129 per square foot.

Strong demand keeps industrial rents on the rise

The average national rent for industrial space hit $8.35 per square foot in January, rising five cents from December and up 6.8 percent year-over-year, CommercialEdge data shows. Port-adjacent and Southeastern markets continued to lead in rent growth, with New Jersey posting the highest increase at 10.9 percent over the past year. The Inland Empire and Miami followed at 9.2 percent, while Nashville and Atlanta saw increases of 9.0 and 8.6 percent, respectively.

Despite a rise in new supply pushing up vacancy rates in some markets, strong demand for high-quality, newly built properties has kept in-place rents climbing. The national vacancy rate held steady at 8.0 percent in January, while the gap between market-wide in-place rents and rates for leases signed in the past 12 months stood at $2.22 per square foot.

Read the full CommercialEdge report.

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Brasa Capital Management has closed its third and largest real estate fund, Brasa Real Estate Fund III, with $582 million in equity commitments. This marks an approximately 30 percent increase from the previous fund, which closed at $450 million, against a $300 million target.

The fund’s initial target was set to $750 million, according to the Private Equity Real Estate News. Out of a total of 22 investors, more than half are public pension funds, and 12 are first-time investors for Brasa. Approximately two-thirds of the capital raised will be directed toward industrial and residential assets.

The firm strategically invests in middle-market residential and commercial properties, focusing on the Western U.S. area and Texas. The company typically commits between $10 and $40 million in equity across various property types, with a strong focus on multifamily and industrial properties, as well as non-performing loans.

Since its establishment in 2018, Brasa has raised more than $1.3 billion in equity. The firm’s first fund closed in June 2019, with $120 million in commitments, exceeding its goal by $20 million.

At the end of last year, the company partnered with Paragon Commercial Group to purchase Huntington Oaks, a 328,711-square-foot shopping center in Monrovia, Calif. The duo took out a $55.9 million loan for the acquisition.

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Ridgecut Road, a real estate investment firm focused on the Northeast market, will soon break ground on I-84 Orange County Logistics Center, a 146,075-square-foot industrial project in Montgomery, N.Y.

Pratt Design Studio provided architecture services, while Premier Design + Build Group will serve as general contractor. Completion is expected in the fourth quarter.  

The facility will rise on a 13.6-acre site at 14 Moosilauke Drive, along Route 208 in Lower Hudson Valley, just north of Interstate 84. New York Stewart International Airport is 8 miles away.

When complete, I-84 Orange County Logistics Center will have 36-foot clear ceiling heights, 31 dock doors and two drive-in doors. The property will also feature LED lighting and an ESFR sprinkler system, as well as 83 car and 16 trailer parking spaces. JLL Vice Chairman James Panczykowski and Vice President Zach Antonucci lead the Northeast Industrial team that has been retained as exclusive leasing agent.  

Corporate neighbors include Amazon, FedEx, UPS, Staples, Medline and XPO Logistics. The site’s location provides easy access to New York City, but also to the Port of New York and New Jersey, one of the area’s most significant industrial drivers. In line with most other ports in the country, it saw a significant rise in tonnage processed in 2024, up 11.4 percent year-over-year, according to Savills. However, potential new impending tariffs could alter activity going forward. 

The post Ridgecut Road to Break Ground on New York Industrial Project appeared first on Commercial Property Executive.

Supermicro plans to build a roughly 3 million-square-foot industrial complex in San Jose, Calif., marking its third Silicon Valley campus.

Construction is set to kick off this year on the park’s first building, which will measure more than 300,000 square feet.

Supermicro manufactures liquid coolers for AI factories, which reduce the carbon footprint of data centers and lower operational costs. The tech company is bound to triple its footprint in San Jose, where it owned roughly 1.5 million square feet of office and manufacturing space as of June 2024.

Supermicro’s future campus

The first building of the campus will rise at 550 E. Brokaw Road, on the site of a former Fry’s Electronics store. The San Jose-based firm went out of business in 2021 following a series of store closings.

Supermicro purchased the 20-acre site for $80 million last February. At the time, the property was entitled for the development of a 1.9 million-square-foot office campus.

In October, Supermicro filed the current plans for the manufacturing and office complex., designed by Arc Tec. Pacific Gas & Electric Co. will deliver the campus’ energy requirements, PG&E Vice President Teresa Alvarado said in prepared remarks.

Silicon Valley’s supply-restrained industrial market

Silicon Valley’s industrial pipeline had just 2 million square feet under construction as of December, according to a report by CBRE. The market’s vacancy rate stood at 3.3 percent at the end of 2024, tightening 30 basis points year-over-year.

With no industrial deliveries during 2024’s last quarter, the market is undergoing supply challenges, the same source shows. AI hardware companies drive industrial demand in Silicon Valley as they’re looking for specialized facilities with heavy power. However, only 17.5 percent of the available space in December could provide 4,000 amps or more.

Hines Interests seeks to capitalize on this demand. Last June, the company broke ground on a three-building advanced manufacturing campus in San Jose, which was the largest industrial development in Silicon Valley at the time. Completion is expected this summer.

The post Supermicro Eyes 3 MSF Bay Area Expansion appeared first on Commercial Property Executive.

The five include the realignment of global supply chains, shifting generational housing preferences, the rise of data centers as critical infrastructure, the continued importance of life science clusters and the need for localized strategies in fragmented markets.

“One of the more unexpected takeaways from our research is the extent of demand fragmentation across real estate sectors,” TCC Director of Research Louis Rosenthal told Commercial Property Executive.

“Initially, we expected this to be a temporary post-Covid effect, but the data points to a deeper structural shift,” Rosenthal said. “We see this playing out in the form of highly localized housing demand patterns, the growing divide between premium and commodity office space, and the divergence between big-box and smaller-footprint logistics facilities, among other examples.”

Industrial sector growth via supply chain shifts

Supply-chain reconfiguration started as a short-term reaction to the pandemic and geopolitical tensions of the early 2020s, but now “shifting trade alliances, reshoring initiatives and geopolitical shifts are reshaping real estate development opportunities in ways that signal a possible long-term realignment,” the Trammell Crow note explains.

The trend actually predates the pandemic, though it has accelerated since then. The changes aren’t merely “deglobalization,” the note points out, but a more nuanced reconfiguration.

For real estate, especially the industrial sector, the upshot of the change is increased demand, as businesses rethink far-away production and consider inventory stockpiling closer to home as insurance against the kinds of disruptions seen recently.

READ ALSO: The Future Demand for Industrial Is Decarbonized

But the change for the industrial sector will be more fundamental than that, TCC explains, as U.S.-based advanced manufacturing kicks into higher gear, with a renewed domestic emphasis on the likes of semiconductors, clean energy components and electric vehicles. “These initiatives are catalyzing demand for logistics infrastructure near manufacturing hubs, ports and rail yards,” the note posits.

Housing: A Tale of Generational Convergence

In the residential sector, a lot is going on, TCC points out: Millennials are busy forming families, Gen Zers are kicking off their careers and expanding the renter pool, and Baby Boomers (who are still around) are transitioning into retirement. 

Gen Z will be especially active in the near term, contributing at least 1.5 million net new households in 2025, the note explains, citing John Burns Consulting data. There are currently 46 million 18- to 27-year-olds in the U.S., and they have roughly the same housing aspirations as previous generations: renting early, ownership later, especially as they start families.

But the U.S. demographic outlook is about more than each group moving into a different phase of life and the potential impacts on residential markets. In 2025 and beyond, there are complicating factors: housing costs are rising and the definition of life-work balance is changing, creating overlapping and sometimes competing housing needs across the generations.

“These demographic shifts present a unique opportunity for lower-density multifamily housing in inner and second-ring suburbs, where space, affordability and community align with the preferences of renters across generations,” the note predicted. While mostly those opportunities are in the suburbs, there is still a place in some urban areas for top product, particularly in convenient locations.

Data centers now strategic infrastructure

TCC characterizes data centers in 2025 and beyond as strategic infrastructure, vital to powering the entire digital transformation. That includes AI, but much more than that.

For its part, AI holds immense transformative potential for the economy and property markets, the note explained, though its impact is likely to vary across economic sectors, industries and property types.

“A gradual, longer-term adoption scenario encourages prioritizing adaptable spaces that can evolve alongside technological advancements… while avoiding premature commitments to speculative, AI-specific features, product types and markets that may take longer to materialize,” the note said.

With all that in mind, the company is focusing on developing data centers in markets with the right balance of a number of key factors. First, access to large population centers, but also proximity to financial hubs, e-commerce centers and national security and defense operations. There also needs to be supportive infrastructure and power availability, and (last but hardly least) land affordability.

Clusters anchor life science demand

The life science boom isn’t new, either, but as the immediate post-pandemic momentum in the sector fades, 2025 will be a “pivotal year” for the sector, according to TCC. The key going forward is balancing cyclical supply challenges with structural drivers, namely advances in biotech, and other health-care and aging therapies, which will continue to be robust over the long term.

The concept of clusters is at the heart of the company’s life science strategy. Clusters are bio-innovation hubs where research labs, universities, hospitals and manufacturing facilities form innovative business ecosystems.

“These clusters generate consistent demand for space, premium rents and, in some cases, public policy incentives that drive further development,” the TCC note explained.

READ ALSO: Life Science Trends to Watch in 2025

Established life science clusters include Boston and San Francisco, and examples of emerging ones are Raleigh, N.C., and Los Angeles. In any case, according to TCC, the challenge for 2025 and beyond lies in meeting the sector’s evolving needs by delivering the right space in the right places.

Fragmented demand poses challenges (and opportunities)

The final factor detailed in the TCC note is what it calls “micro-market nuances.” Knowing broad market, or even submarket trends, is well and good, but ours is a time of fragmentation of demand.

“Our research highlights the fragmentation of demand, showing how migration patterns, affordability challenges, and tenant preferences can vary significantly within the same submarket,” the note said.

Thus, identifying resilient micro-markets, even within markets that are sluggish overall, can be critical to identifying development opportunities. Data is a powerful tool for uncovering these opportunities, but it is only a starting point that depends on the ability and experience needed act on it.  

The post 5 Trends Defining CRE Development in 2025 appeared first on Commercial Property Executive.

The Trepp CMBS Special Servicing Rate pulled back 2 basis points to 9.87 percent in January 2025. This was the first decline in the monthly rate since December 2023.

The main driver of the rate’s decrease was the increased overall balance of all CMBS loans outstanding. Compared to last month, the balance of loans in special servicing rose by $843.0 million, but the balance of all outstanding CMBS loans also increased by $9.5 billion.

Broken down by property type, two sectors experienced substantial changes to their individual rate. The retail rate was down most significantly, falling just shy of 100 basis points to 10.68 percent. The sector with the biggest increase in special servicing rate was mixed use, which rose 98 basis points to 12.71 percent. This is the largest jump in the mixed use rate since March 2013. Two other sectors that sustained material change were multifamily and office. The multifamily rate fell 31 basis points to 8.42 percent while the office rate rose 34 basis points to 15.11 percent. This is the first time the office rate has cleared 15 percent since Trepp began publishing these rates in the year 2000.

—Posted on February 28, 2025

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Put another way, even that conservative estimate of the economic damage adds up to about 4 percent of California’s GDP.

That’s the beginning of the context for Rising from the Ashes: Assessments on the Impacts to CRE Post the LA Wildfires, a new report from JLL Research.

As day after day of news video footage from the fire zones showed, the heaviest property damage was to single-family residences, nearly 11,000 of which were destroyed, representing more than half of the SFR stock in the two fire zones (Palisades and Eaton). In addition, more than 300 multi-housing structures were destroyed.

On one hand, the 11,000-odd housing units destroyed or significantly damaged represent just 0.4 percent of the market’s housing stock, yet the estimated 24,000 families displaced by the fires have to live somewhere.

READ ALSO: 5 Overlooked Insurance Gaps That Could Hit Your Bottom Line

And JLL reminds us that Southern California was already a long-term supply-constrained market. As higher-income families relocate to single-family rentals, others will spill over into the multifamily sector. “Already the exacerbation of Los Angeles’ multi-housing supply shortage will result in elevated rent growth in the medium term,” according to the report.

Impact to retail, office, industrial  

Though less publicized, the region’s retail, office and industrial commercial real estate sectors were also hit. About 200 commercial buildings, predominantly retail properties and food-and-beverage establishments, were destroyed. They represent, JLL stated, nearly half of the retail establishments and about one-third of the total retail space in the fire zones.

In the near term, home centers and hardware retailers could benefit. “Longer term,” JLL added, “mixed-use developments may be a way to address both the housing shortage exacerbated by the fire as well as replace the lost retail space, which has not been growing for a long time.”

The fires’ effects on office space are expected to be indirect, potentially by displacing office workers, especially in the professional and technology services sector and the media and entertainment sector.

The impacts on industrial real estate could be more direct, with rebuilding efforts boosting the demand for warehouse space and IOS properties.

Additionally, JLL reported, home appliances, furnishing and day-to-day necessities must be replaced, further bolstering the need for warehousing. “This will help lower industrial vacancies in and around the affected areas, particularly in the San Fernando Valley and San Gabriel Valley markets where total vacancy currently stands at 4.2 percent and 5.8 percent, respectively.”

Given the efforts by the state government to streamline rebuilding, JLL noted, the real challenges lie in physical construction. “Due to significant demand, labor and materials will be expensive, further complicating rebuilding efforts.”

Finally, those generally higher replacement costs for commercial real estate have the potential to make existing buildings more attractive for investors.

The post How Rebuilding From LA’s Wildfires Is Impacting CRE appeared first on Commercial Property Executive.

Lincoln Property Co., in joint venture with Walton Street Capital, has purchased a 226,392-square-foot distribution center for $43.8 million in Weston, Fla. The buyer assumed a $41.8 million loan and increased it to approximately $79 million through an amended and restated note, originated by Nuveen, TIAA’s subsidiary, Broward County public records show.

CBRE negotiated on behalf of the seller, Manova Partners, formerly known as GLL Real Estate Partners. The asset previously traded in 2018, when Becknell Industrial sold it for $30.4 million, CommercialEdge shows.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The deal represents the partnership’s third industrial transaction in the last four months, bringing the companies’ footprint in the South Florida area to more than 700,000 square feet. Lincoln Property Co. will be the property manager at the building, that was 54 percent leased at the time of its trade. Tenants include Mondelēz International and Vital Pharmaceuticals Inc., according to CommercialEdge.

The cross-dock industrial building is at 1600 N. Park Drive, close to interstates 75 and 595 that allows easy access through metro Miami. Fort Lauderdale-Hollywood International Airport is 17 miles from the property, while Miami International Airport is 27 miles away.

Built in 1994, the two-story building includes 25-foot clear heights, two drive-in doors, 46 dock-high doors and dock levelers and bumpers. Additionally, the 13-acre property features 226 vehicle parking spots and 11 trailer spots.

Vice Chairmen José Lobón, Trey Barry and Frank Fallon, Vice Presidents Royce Rose and George Fallon, together with Financial Analysts Gabriel Braun and Daniel Sarmiento with CBRE worked on behalf of the seller.

Big deals in the area

Recent notable industrial acquisitions in the Miami metro include the purchase of a 505,436-square-foot industrial campus in Opa-Locka, Fla. Link Logistics sold the property known as Ironwood Commerce Center to TA Realty in December.

One month earlier, Longpoint Partner picked up a 1.4 million-square-foot South Florida portfolio in a $331.3 million deal. Blackstone sold the industrial portfolio, that includes mostly infill, last-mile facilities.

The post Lincoln Property JV Buys Fort Lauderdale Facility for $44M appeared first on Commercial Property Executive.

More than two years after breaking ground, L’Oréal Groupe has completed its nearly 250,000-square-foot scientific research center in Clark, N.J., and has begun full operations at the Union County property. The $160 million facility is L’Oréal’s largest outside of France and biggest investment in a R&I center.

L’Oréal started work on the project at 30 Terminal Ave. in September 2022 and began welcoming some employees in mid-2023. It replaces the company’s existing facilities in the New Jersey area.

The center features a 26,000-square-foot modular laboratory and a consumer center for product testing and co-creation that will accommodate up to 400 consumers daily. The property also has a mini-factory to scale final formulations before full-scale production.

Sustainability highlights include 10,000 solar panels, which meet 70 percent of the center’s energy needs, an eco-retention pond for stormwater management and employee-led gardening and composting initiatives that create a green workspace.

Flagship R&I center

The facility, now considered the flagship in L’Oréal’s global scientific research ecosystem, will employ more than 600 scientists, engineers and researchers. The team at the center, which complements R&I hubs in France, Brazil, South Africa, India, China and Japan, will be working across product innovation, development and testing to develop high-quality and safe beauty products, including hair, skin and makeup.

L’Oréal USA, the largest subsidiary of L’Oréal Groupe, is headquartered in New York City. It employs more than 12,000 people and operates administrative, research, manufacturing and distribution facilities across 16 states. In April 2021, L’Oréal USA opened a second company headquarters in El Segundo, Calif., in the Los Angeles area.

New Jersey growth

Revlon, another global personal care product company, is also moving its science and innovation lab within New Jersey. In November, Revlon leased 62,000 square feet at The Northeast Science and Technology Center, a 100-acre campus in Kenilworth, N.J., dedicated to research and development innovations. The firm was the first tenant there since pharma giant Merck left.

With more than 12 million square feet of space, New Jersey is one of the top 10 life science clusters in the U.S., as ranked by JLL. Of the top 20 pharma companies, 14 are located in New Jersey and eight of the top R&D companies are also in the state, according to Newmark’s third-quarter life science market report for Northern New Jersey.

In January, global oncology company BeiGene completed its $800 million manufacturing and clinical development center in Hopewell, N.J. The campus marked one of the largest recent investments in biopharmaceutical manufacturing in the U.S.

The post L’Oréal Completes $160M Research Center appeared first on Commercial Property Executive.

To have your commercial real estate transaction featured, submit details to Agota Felhazi at agota.felhazi@cpe-mhn.com.

Read the March 2025 issue of CPE.

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The Trepp CMBS Delinquency retreated slightly in January 2025, with the overall delinquency rate decreasing 1 basis point to 6.56 percent.

This pullback follows six straight months of increases to the overall delinquency rate, during which the rate rose almost 120 basis points. The decrease in the overall rate was driven by the office sector, with the office rate falling 78 basis points to 10.23 percent. This was some welcome relief for the sector, which had reached an all time high to end last year.

READ ALSO: Best Capital Stack Strategies for 2025

Outside of the office sector, the remaining four of five major property types all experienced increases to their respective delinquency rates. These increases were relatively tame however, with only the industrial rate increasing more than 10 basis points. On the loan level, the largest loan to become newly delinquent was a single-asset single-borrow office loan worth $525 million.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.29 percent, down 29 basis points from December. The percentage of loans in the 30 days delinquent bucket is 0.39 percent, up 13 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on February 27, 2025

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SL Industrial Partners, a member of The Silverman Group, had purchased a 293,740-square-foot industrial asset in Greensboro, N.C. The property traded for $29.5 million from Tectonic, according to Guilford County public records.

SL Industrial Partners now expanded its industrial portfolio in North Carolina to more than 6 million square feet.

Cushman & Wakefield negotiated on behalf of the seller and is the leasing agent in charge of the property.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

Developed by Tectonic with $16.5 million in construction funds from United Bank, the asset came online in 2023, CommercialEdge shows. The property is at 3618 McConnell Road and provides easy access to interstates 40, 85 and 840. Piedmont Triad International Airport is 21 miles away, while Winston-Salem, N.C., is within 34 miles of the property.

Sitting on a nearly 23-acre lot, the single-story distribution facility features 36-foot clear heights, ample column spacing, 60-foot speed bays, 30 dock doors, ESFR sprinkler systems and 30 knockouts. Additional features include trailer parking and 202 vehicle parking spots.

Cushman & Wakefield’s Tom Townes and Ryan Conboy worked on behalf of the seller. The property is available for lease, with the same team retained by SL Industrial Partners in charge of leasing efforts.

Big purchases in the area

The news comes after SL Industrial Partners recently sold an industrial property in the state, within the Charlotte market. In late November, the company sold a 402,390-square-foot building in Concord, N.C., to Stonelake Capital Partners, in a $51 million deal.

One of last year’s significant industrial deals closed near Charlotte and Greensboro. Equus Capital purchased a nine-building industrial portfolio for $124 million from Investcorp. Totaling 1.4 million square feet, this portfolio includes single-tenant distribution properties.

The post SL Industrial Partners Makes $30M North Carolina Buy appeared first on Commercial Property Executive.

As of December 2024, new orders declined by an average of 0.5 percent year-over-year, amounting to $3.2 million, according to data from the U.S. Census Bureau. Despite this overall dip, certain industries demonstrated notable gains. The Durable Goods Industries sector emerged as the top performer, posting an 11.9 percent increase compared to December 2023. The Electrical Equipment, Appliances and Components category followed closely, registering a 7.7 percent rise, while orders for Machinery expanded by 6.6 percent. Likewise, the Fabricated Metal Products segment recorded a 4.3 percent uptick.

Conversely, the Transportation Equipment sector faced a significant setback, with orders plummeting by 13.5 percent year-over-year. Meanwhile, the Furniture and Related Products category experienced only a marginal increase of 0.2 percent. Orders for Primary Metals inched up by 1.0 percent, while the Nondurable Goods Industries sector saw a 2.8 percent rise. Additionally, the Computers and Electronic Products segment reported a 2.9 percent boost in new orders.

Month-over-month growth

On a monthly basis, new orders increased by 3.6 percent from November 2024, amounting to $20.3 million. Five sectors experienced growth, with two of them recording double-digit gains. The Computers and Electronic Products segment led the way with an impressive 24.5 percent surge, while the Transportation Equipment sector rebounded with a 13.5 percent jump. At the same time, orders for Machinery expanded by 7.9 percent, while the Durable Goods Industries and Electrical Equipment, Appliances and Components sectors registered increases of 7.8 percent and 7.6 percent, respectively.

On the downside, the Furniture and Related Products industry posted the steepest monthly decline, with orders dropping by 8.3 percent. The Primary Metals sector experienced a slight contraction of 0.5 percent, followed closely by Fabricated Metal Products, which dipped by 0.4 percent. Additionally, orders within the Nondurable Goods Industries sector edged down by 0.2 percent.

—Posted on February 26, 2025

As of November 2024, new orders decreased by an average of 2.8 percent year-over-year, totaling $16.2 million, according to the U.S. Census Bureau. Among all industries, the Electrical Equipment, Appliances and Components sector stood out with a 2.9 percent increase compared to November 2023. The Nondurable Goods Industry category came in second with a modest 0.7 percent gain, while new orders for Fabricated Metal Products rose by 0.4 percent. Similarly, Computers and Electronic Products recorded a slight uptick of 0.3 percent.

In contrast, orders in the Transportation Equipment sector suffered a sharp decline of 16.7 percent year-over-year. New orders for the Durable Goods Industries fell by 6.4 percent, while the Machinery category posted a 1.3 percent drop. Orders for Furniture and Related Products slipped by 0.9 percent, and Primary Metals recorded a slight decrease of 0.4 percent.

Month-over-month growth

Month-over-month, new orders experienced a 7 percent drop compared to October 2024, amounting to $42.2 million. All sectors reported negative growth; Orders for Furniture and Related Products decreased by 1.3 percent, while the Computers and Electronic Products segment recorded a 2.2 percent decrease.

The largest month-over-month losses were seen in the Fabricated Metal Products sector, which fell by 10.7 percent, and Machinery, where orders decreased by 10.6 percent. Both the Electrical Equipment, Appliances and Components and Transportation Equipment sectors posted a 9.2 percent decrease. Additionally, new orders in the Durable Goods Industries fell by 8.8 percent, while the Primary Metals sector contracted by 7.9 percent.

—Posted on January 27, 2025

As of October, new orders increased by an average of 3.4 percent year-over-year, totaling $20.1 million, according to the latest data from the U.S. Census Bureau. The Transportation Equipment sector led all industries with a notable 9.5 percent increase compared to October 2023. The Electrical Equipment, Appliances and Components category followed with a 6.1 percent rise, followed closely by Durable Goods Industries, with a 5.4 percent gain. Meanwhile, orders for Fabricated Metal Products saw a 4.7 percent increase.

Primary Metals and Computers and Electronic Products both recorded a 3.2 percent increase, reflecting moderate year-over-year growth. Meanwhile, new orders in the Furniture and Related Products sector expanded by 2.9 percent, while Machinery posted a smaller uptick of 2.2 percent. The Nondurable Goods Industries sector, which accounts for a significant share of manufacturing, grew more modestly by 1.7 percent.

Month-over-month growth

On a month-over-month basis, new orders increased by 0.8 percent when compared to September, or $4.7 million. At 4.5 percent, orders in the Primary Metals sector recorded the highest increase, followed Nondurable Goods Industries, up 3.3 percent. At the same time, orders grew 2.4 percent for Fabricated Metal Products. The Machinery segment also recorded growth, increasing 1.3 percent from the previous month.

However, not all industries performed positively. The Computers and Electronic Products category experienced the steepest drop, falling 13.4 percent compared to September. The Transportation Equipment sector saw a 5.0 percent month-over-month decline, reversing its annual gains. Additionally, the Durable Goods Industries and The Electrical Equipment, Appliances and Components segments contracted by 1.8 percent, highlighting ongoing variability within the manufacturing sector.

—Posted on December 27, 2024

As of September, new orders decreased by an average of 2.1 percent year-over-year, totaling $13 million, according to the latest data from the U.S. Census Bureau. Despite the overall decline, several industries posted notable year-over-year growth. The Computers and Electronic Products sector saw the largest increase, with new orders rising by 2.7 percent compared to September 2023.

This was followed by a 3.4 percent gain in the Electrical Equipment, Appliances and Components category and a 3.3 percent rise in Fabricated Metal Products. The Furniture and Related Products sector also grew by 2.8 percent, while Primary Metals experienced a smaller 1.1 percent increase.

Conversely, the Transportation Equipment sector recorded the sharpest year-over-year decline, dropping by 9.6 percent. Durable Goods Industries and Machinery also saw declines of 2.8 percent and 1.0 percent, respectively. Nondurable Goods Industries, which make up a substantial portion of the manufacturing sector, dipped slightly by 1.4 percent.

On a month-over-month basis, new orders remained relatively flat, inching up by 0.1 percent from August, or $332,000. The Computers and Electronic Products sector led the gains with a significant 19.1 percent increase, while orders in the Transportation Equipment segment grew by 7.8 percent. The Electrical Equipment, Appliances and Components category followed with a 4.6 percent rise.

In contrast, Nondurable Goods Industries posted a 3.1 percent decline, while Primary Metals dropped by 4.3 percent. Meanwhile, Machinery and Fabricated Metal Products recorded slight decreases of 1.0 percent and 1.3 percent, respectively, showcasing mixed results across industries.

—Posted on November 26, 2024

As of August, new orders fell by an average of 0.6 percent, amounting to $3.9 million, based on data from the U.S. Census Bureau. However, three sectors showed improvement compared to August 2023. The Computers and Electronic Products sector saw a significant 3.2 percent increase in new orders, while Furniture and Related Products posted a 1.1 percent gain. Fabricated Metal Products saw a modest 0.2 percent rise.

Year-over-year, nearly all surveyed manufacturing industries experienced negative growth, except for these sectors. The Primary Metals sector faced the steepest decline, with orders dropping 1.9 percent. The Electrical Equipment, Appliances and Components sector saw a 1.1 percent decrease, and the Machinery sector recorded a 0.9 percent dip. Nondurable Goods Industries followed with a 0.8 percent decline, while Transportation Equipment orders fell by 0.6 percent.

On a month-over-month basis, new orders grew by 4.5 percent, totaling $25.8 million as of August. Growth was seen in all but one sectors. Transportation Equipment led with a 13.2 percent surge, followed by a 10.5 percent increase in Electrical Equipment, Appliances and Components. Durable Goods Industries posted a 7.5 percent gain, and Computers and Electronic Products saw a 6.5 percent rise. Fabricated Metal Products orders increased by 5.8 percent.

In contrast, the Furniture and Related Products segment posted the largest monthly decline, falling by 0.5 percent. Nondurable Goods Industries saw a modest 1.8 percent increase, while the Primary Metals sector grew by 3.5 percent. Orders in Machinery rose by 3.8 percent.

—Posted on October 23, 2024

As of July, new orders increased by an average of 3.7 percent year-over-year, totaling $20.8 million, according to the latest data from the U.S. Census Bureau. The largest year-over-year growth was observed in the Furniture and Related Products category, where new orders surged by 7.7 percent compared to July 2023. Meanwhile, the Nondurable Goods Industries sector posted a solid 4.5 percent increase, closely followed by a 4.2 percent rise in the Fabricated Metal Products sector.

During the same period, the Durable Goods Industries segment saw a more moderate 2.9 percent uptick, with Transportation Equipment orders growing by 2.8 percent, Machinery rising by 2.3 percent, and Primary Metals recording a 2 percent increase. Both the Computers and Electronic Products and Electrical Equipment, Appliances, and Components sectors experienced smaller gains, each posting a 1.8 percent rise in new orders.

On a month-over-month basis, new orders decreased by an average of 3.1 percent, or $18.4 million. In contrast to the annual trend, most sectors saw a drop in new orders compared to June 2024. The only exception was the Furniture and Related Products segment, where orders rose by 1.4 percent. Meanwhile, the Nondurable Goods Industries sector remained virtually unchanged.

Across nearly all industries, July recorded negative month-over-month growth. The steepest decline occurred in the Computers and Electronic Products sector, where new orders plummeted by 17.6 percent. Similarly, the Electrical Equipment, Appliances, and Components sector experienced an 11.2 percent drop, while the Machinery sector reported a 7.3 percent decrease. The Transportation Equipment sector saw a 6.7 percent decline, closely followed by a 6.4 percent drop in the broader Durable Goods Industries.

—Posted on September 23, 2024

As of June, new orders declined by an average of 5.2 percent, equivalent to a $32.6 million, according to U.S. Census Bureau data. However, there were two sectors that showed improvement compared to June 2023. The Computers and Electronic Products sector experienced a notable surge in new orders, rising by 2.1 percent, while Nondurable Goods Industries posted a 1.3 percent gain.

Year-over-year analysis reveals that nearly all surveyed manufacturing industries experienced negative growth, with only two exceptions. The most significant decline was observed in the Transportation Equipment sector, where orders plummeted by 26.2 percent. Additionally, the Durable Goods Industries recorded an 11.2 percent decrease, and the Primary Metals sector saw a 4.8 percent drop.

On a month-over-month basis, new orders saw a modest decline of 0.1 percent, amounting to $629,000 as of June. The growth in new orders continued to vary across different sectors. The Computers and Electronic Products sector led the increases with an 18.6 percent surge. This was followed by a 5.8 percent rise in the Electrical Equipment, Appliances, and Components sector, a 2.9 percent uptick in Machinery, and a 1.1 percent gain in Durable Goods Industries.

Conversely, the Fabricated Metal Products segment recorded the sharpest monthly decline, falling by 5.4 percent. Orders for Furniture and Related Products decreased by 4.7 percent, the Primary Metals sector dropped by 4.5 percent, and the Nondurable Goods Industries sector experienced a 1.2 percent decrease.

—Posted on August 23, 2024

As of May, new orders rose by an average of 0.9 percent, or $5.5 million, according to data from the U.S. Census Bureau. The most substantial increase compared to May 2023 occurred in the Computers and Electronic Products sector, where new orders climbed by 4.1 percent. The Furniture and Related Products segment experienced a 3.6 percent rise, Nondurable Goods Industries grew by 3.1 percent, and Fabricated Metal Products saw a 2.7 percent uptick.

Year-over-year, all but three surveyed manufacturing industries showed positive growth. As of May, the Transportation Equipment sector saw the steepest decline, with a rate of -6.3 percent. Meanwhile, orders in the Durable Goods Industries segment decreased by 1.3 percent, and the Machinery sector recorded a 0.2 percent drop.

On a month-over-month basis, new orders increased by an average of 2.0 percent, or $11.9 million, as of May. Reflecting similar yearly trends, nearly all surveyed sectors experienced an uptick in new orders. Transportation Equipment saw a 6.4 percent increase, Furniture and Related Products grew by 3.6 percent, Fabricated Metal Products and Durable Goods Industries rose by 3.4 percent, and orders in the Electrical Equipment, Appliances, and Components sector increased by 2.8 percent.

The only decline was in the Machinery segment, which fell by 0.8 percent. Orders for Nondurable Goods Industries edged up by 0.8 percent, Primary Metals increased by 1.2 percent, and the Computers and Electronic Products sector rose by 1.9 percent.

—Posted on July 24, 2024

As of April, new orders increased by an average of 3.4 percent, or $19.4 million, according to data from the U.S. Census Bureau. The most significant rise compared to April 2023 was in the Fabricated Metal Products sector, where new orders surged by 5.9 percent. The Nondurable Goods Industries saw a 5.5 percent gain, Primary Metals increased by 5.3 percent, while Machinery saw a 4.1 percent rise.

Year-over-year, all but one surveyed manufacturing industries showed positive growth. As of April, the only decrease came from the Transportation Equipment sector, where the rate stood at -5.3 percent. Meanwhile, orders recorded a 1.0 percent increase for Furniture and Related Products. At the same time, the Durable Goods Industries sector recorded a 1.2 percent increase.

However, on a month-over-month basis, new orders fell by an average of 5.0 percent, equating to $30.9 million as of April. Unlike the yearly trends, all surveyed sectors experienced a decline in new orders. Nondurable Goods Industries saw a 0.3 percent decrease, Primary Metals declined by 0.7 percent, Fabricated Metal Products fell by 2.8 percent, and Furniture and Related Products decreased by 3.4 percent.

The most significant monthly drop was recorded within the Transportation Equipment segment, which plummeted by 19.5 percent. Orders for Computers and Electronic Products fell by 17.7 percent, Durable Goods Industries saw a 9.8 percent decrease, and the Electrical Equipment, Appliances and Components sector decreased by 8.6 percent. Machinery orders also recorded a 4.1 percent decline.

—Posted on June 24, 2024

In March, there was a notable downturn in new orders, averaging a decrease of 0.9 percent or $5.6 million, as per data gathered by the U.S. Census Bureau. Comparing this to March 2023, the most significant surge was observed in the Nondurable Goods Industries sector, with new orders rising by 0.5 percent.

When examining year-over-year trends, all surveyed manufacturing industries showcased negative growth patterns, with only two exceptions. The Primary Metals sector saw the steepest decline at -5.3 percent, trailed by Transportation Equipment at -2.9 percent, Durable Goods industries at -2.3 percent, Machinery at -1.8 percent, and Electrical Equipment, Appliances and Components at -1.7 percent. Meanwhile, orders for Furniture and Related Products experienced a slight 0.3 percent decrease.

On a month-over-month basis, new orders increased by an average of 11.1 percent—equal to $61.4 million—as of March. Contrary to yearly patterns, all sectors surveyed experienced growth in new orders. The most remarkable spike was witnessed in the Transportation Equipment sector, which saw a 25.5 percent rise in new orders. Following closely behind was the Computers and Electronic Products segment, boasting a robust 22.9 percent gain. Durable Goods Industries also experienced a surge of 13.8 percent, while the Electrical Equipment, Appliances and Components sector saw a 10.6 percent uptick.

Conversely, other industries experienced growth rates that fell below the double-digit percentage mark. Nondurable Goods Industries observed a commendable 8.6 percent increase, while the Fabricated Metal Products segment saw a 7.2 percent uptick. Similarly, Machinery orders increased by 7.1 percent, while Primary Metals recorded a 1.4 percent rise.

—Posted on May 23, 2024

As of February, new orders increased by an average of 3.6 percent, translating to $19.4 million, according to data from the U.S. Census Bureau. Compared to February 2023, the most substantial rise came from the Fabricated Metal Products sector, where new orders climbed by 7.1 percent. The Computers and Electronic Products segment followed with a 6.5 percent gain, Durable Goods Industries recorded a 4.5 percent increase, followed by Transportation Equipment, where orders were up by 4.4 percent.

Year-over-year, all surveyed manufacturing industries displayed positive growth trends. As of February, the smallest increase came from the Furniture and Related Products sector, where the rate stood at 2.4 percent. Meanwhile, orders recorded a 2.8 percent increase for Nondurable Goods Industries. At the same time, the Machinery sector recorded a 3.3 percent increase.

On a month-over-month basis, new orders increased by an average of 3.3 percent—equal to $17.9 million—as of February. Consistent with yearly patterns, all sectors surveyed experienced positive growth in new orders. Transportation Equipment saw the most remarkable surge at 13.6 percent. Orders for Furniture and Related Products climbed by 7.2 percent, Durable Goods Industries saw a 6.3 percent increase, and the Computers and Electronic Products sector posted a 3.6 percent shift. Machinery orders closely followed with a 3.0 percent growth rate.

Meanwhile, orders for the other industries recorded growth rates below the 3 percent mark. Nondurable Goods Industries observed a 0.7 percent increase, while the Electrical Equipment, Appliances and Components segment experienced a 2.4 percent increase. At the same time, orders for Fabricated Metal Products were up by 2.5 percent, while Primary Metals registered a 2.6 percent increase.

—Posted on April 22, 2024

Year-over-year through January, new orders decreased by an average of 1.6 percent, equal to $8.7 million, based on data from the U.S. Census Bureau. The Computers and Electronic Products sector recorded the most significant increase, up by 5.4 percent from January 2023. Fabricated Metal Products followed closely with a 4.5 percent rise. Electrical Equipment, Appliances, and Components saw a 1.3 percent growth, while orders for Primary Metals increased by 0.6 percent.

However, there was inconsistency in the year-over-year changes, with five sectors experiencing declines as of January 2024. Transportation Equipment had the largest decrease, down by 6.4 percent. Meanwhile, orders for Furniture and Related Products declined by 3.2 percent. Nondurable Goods Industries decreased by 2.2 percent, Machinery by 0.4 percent, and Durable Goods Industries by 0.9 percent.

Looking at the month-to-month data for January, new orders showed an uneven pattern, with an average decrease of 8.9 percent, or $52.4 million. Similar to the yearly trend, most industries experienced a decline in new orders, except for four. Fabricated Metal Products saw the most significant growth, up by 9.3 percent. Primary Metals increased by 8.1 percent, while Furniture and Related Products saw a 4.4 percent rise. At the same time, Machinery experienced a 0.5 percent increase.

Conversely, the Transportation Equipment sector experienced a significant decline of 36.7 percent in new orders, followed by Computers and Electronic Products (-25.6 percent) and Durable Goods Industries (-15.8 percent). Electrical Equipment, Appliances, and Components recorded a 2.9 percent drop, while Nondurable Goods Industries decreased by 1.7 percent.

—Posted on March 22, 2024

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LBA Logistics has purchased a 220,240-square-foot, fully occupied Class A industrial facility in Glendale, Ariz. The property changed hands for $39 million, according to CommercialEdge.

Echo Real Estate Capital Inc., in joint venture with Grandview Partners, was the seller. Cushman & Wakefield brokered the deal for the partnership.

The facility, known as Building A, is at 9701 N. 151st Ave. within Echo Park 303, an industrial campus that includes a 455,936-square-foot second building, and is fully occupied by HubStarr Logistics.

READ ALSO: Top 5 Markets for Industrial Transactions

The industrial park is close to Interstate 10 and the Loop 303 industrial corridor, allowing easy access within the Southwest Valley submarket and through the Greater Phoenix area. Phoenix Sky Harbor International Airport is 31 miles from the facility, while Mesa Gateway Airport is within 63 miles.

Echo Park 303’s Building A features 32-foot clear heights, two grade-level doors, 56 dock-high doors and 440 vehicle parking spots. The property, together with the second building at 9501 N. 151st Ave., was designed by LGE Design Build and came online in 2023. Developed by Echo Real Estate Capital Inc., the two-building business park was financed by a $53.6 million loan originated by Pacific Coast Capital Partners, CommercialEdge shows.

Executive Vice Chairman Will Strong, Directors Michael Matchett and Jack Stamets, together with Senior Associate Molly Hunt and Senior Financial Analyst Madeline Warren with Cushman & Wakefield represented the seller.

Phoenix industrial sales

The company recently brokered another deal in Phoenix. In early January, CIP Real Estate picked up a 809,230-square-foot Class A industrial park in Mesa, Ariz., from Canyon Partners Real Estate LLC. The multi-tenant campus known as Broadway 101 Commerce Park traded for $168.3 million, in a transaction that represented the largest single deal for an industrial park in the Southeast Valley of Phoenix.

During the same week, LaSalle Investment Management also made a notable purchase in the metro: the company picked up a 536,122-square-foot, five-building industrial campus in Tempe, Ariz.

The post LBA Pays $39M for Phoenix Industrial Asset appeared first on Commercial Property Executive.

Sunrise Industrial Park One and Two total more than 509,000 square feet. The larger of the two buildings, 3101 Marion Drive, totals more than 271,600 square feet and dates from 1997, based on CommercialEdge data. The other building, the 237,600-square-foot 4601 E. Cheyenne Ave., is of the same vintage. Put together, the buildings are currently 78 percent leased to 10 tenants.

The assets feature 24- to 30-foot clear heights, dock-high loading, ESFR sprinklers and evaporative cooling systems, as is common in this part of the country, though they are banned in new commercial buildings. Floorplans between 20,000 square feet to 89,000 square feet are currently available, with Jerry Doty of Colliers International representing the new owner.

MDH Partners’ James Hwang oversaw the acquisition for the company, with Newmark’s Bret Hardy and Andrew Briner representing Link Logistics.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The company has been on an acquisition roll recently. In 2024, MDH acquired more than 9 million square feet of industrial space in various markets, including a near year-end deal that saw it buy a portfolio of 12 buildings ranging from 140,300 square feet to 1 million square feet.

Supply overshoots industrial demand in Las Vegas

Preleasing on newly completed industrial projects in Las Vegas fell dramatically in the fourth quarter of 2024, bringing the market’s vacancy to 8.6 percent, according to Colliers data. A year earlier, vacancy was roughly 3 percent, and throughout 2022 and much of 2023, the rate hovered around 2 percent.

Net industrial absorption in the fourth quarter of 2024 was 467,260 square feet, Colliers noted. That brought net absorption for the entirety of 2024 to 4.7 million square feet, a decrease of 38.9 percent compared with 2023.

Even so, developers are still quite active in the Las Vegas industrial market, with 5.9 million square feet slated for completion during 2025, Colliers reported. Only 2.5 percent of that space preleased.

The post MDH Partners Enters Las Vegas With $94M Buy appeared first on Commercial Property Executive.

The Minneapolis portfolio has 17 buildings and spans nearly 1.9 million square feet, while the Baltimore acquisition includes 10 buildings totaling 881,000 square feet. The locations and square footage of each asset in the two portfolios were not released and the company declined to offer more details, including the seller or sellers of the assets.

The company described the properties in general terms noting they have highly diversified tenants, high average clear heights, ample loading docks and parking spaces, as well as proximity to major thoroughfares, employment centers and residential neighborhoods.

READ ALSO: The Future Demand for Industrial Is Decarbonized

The firm, which has been among the top five largest cross-border buyers of U.S. real estate over the past five years, focuses on key U.S. industrial markets with significant population bases, diversified economies and resilient tenant demand.

Investcorp noted that as of the fourth quarter of 2024, market rent growth over the past three years averaged 13.4 percent in Baltimore and 11.4 percent in Minneapolis, according to Green Street Advisors data. These figures outpace the 9.3 percent average for the top 50 U.S. metropolitan areas.

Baltimore has seen a recent influx of major corporations including Optum Inc., JLL, Under Armour and Morgan Stanley. Minneapolis has a diverse economy that features 17 Fortune 500 companies like Target Corp., Best Buy Co., 3M Co. and General Mills.

In the U.S., the Bahrain-based firm invests primarily in the industrial and residential asset classes, with 98 percent of its portfolio coming from those two sectors. As of September, nearly 60 percent of Investcorp’s real estate assets under management in the U.S. were in the industrial sector. Since 1996, Investcorp has acquired approximately 1,400 properties totaling more than $26 billion.

Growing U.S. industrial presence

The Minneapolis and Baltimore deals come about five months after Investcorp made three industrial acquisitions totaling about 1.5 million square feet for approximately $300 million. The Dallas and Atlanta infill portfolio had 16 buildings totaling 597,161 square feet and expanded the firm’s existing significant industrial presence in both markets. The West Coast infill portfolio includes 17 buildings encompassing 539,909 square feet across Denver, Las Vegas, San Diego and the San Francisco Bay Area. The Tampa industrial portfolio had eight buildings comprising 279,887 square feet.

Investcorp officials noted well-located, multi-tenanted assets continue to attract interest from tenants and investors as re-shoring and nearshoring efforts reshape the industrial and manufacturing landscapes in the U.S. The three portfolios reflected those characteristics and were expected to provide a resilient cash flow with year-over-year industrial rent growth.

Last April, Investcorp acquired a 1.3 million-square-foot, 31-building industrial portfolio in South Florida and Denver for about $200 million.

A month earlier, Investcorp formed a new investment vehicle valued at $526 million with two leading sovereign wealth funds to focus on acquiring U.S. industrial assets. The investment vehicle’s buying capacity was estimated at about $1.5 billion.

Several properties in Indiana and Florida previously owned by Investcorp changed hands last year. In July, Sperry Equities acquired Northwest Indiana Logistics Portfolio with 639,829 square feet across two buildings in Portage, Ind. Investcorp had owned the assets, which are in the Chicago industrial market, according to CommercialEdge data.

Cypress Park, a five-building industrial park in Orlando, Fla., with 256,838 square feet, was sold to Harbert Management Corp. in April for $40.5 million. The industrial park had been acquired by Investcorp in 2021 for $28 million, according to CommercialEdge.

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The borrower was a joint venture of InLight Real Estate Partners and an Ares Management Real Estate fund. The loan will be used for lease-up of the project in addition to construction.

As currently planned, the first phase of Eastport Logistics Park will feature four buildings with clear heights of 32 to 36 feet, 135- to 185-foot truck court depths, 222 dock doors, 418 trailer parking stalls and 691 car parking spaces.

The two larger buildings (100 and 200) will total approximately 312,000 square feet, and the two smaller buildings (300 and 400) will total about 132,000 square feet. The second phase will offer build-to-suit options as large as 688,000 square feet.

READ ALSO: Port Activity Rebounds

The development’s location in Jacksonville’s Northside submarket is just off I-295, 5 miles from the I-95 interchange and 4 to 5 miles from the Port of Jacksonville’s Dames Point, ICFT CSX and Blount Island terminals. The project also has the capability for rail service by CSX, a main line of which abuts the property to the north.

The park is scheduled to deliver in the first quarter of 2026. 

Languid activity

The industrial real estate sector in Jacksonville’s Northside submarket has an overall vacancy of 5.7 percent on an inventory of about 32.5 million square feet, according to a fourth-quarter report from Cushman & Wakefield. Net absorption in the latest quarter was a negative 84,000 square feet, which was about on par for the region as a whole. This reflected a surge in deliveries of warehouse/distribution space with little preleasing.

Just after New Years, Affinius Capital provided a $77.4 million loan to ForeFront Commercial Real Estate, in conjunction with an Ares Management Real Estate fund, for their development of West Worth Commerce Center, a 992,000-square-foot industrial campus in Fort Worth, Texas.

Last fall, Affinius collaborated with Bank OZK on two loan deals.

The pair extended a $135 million loan to a joint venture of DECA Cos. and Wildcat Capital Management for the development and lease-up of an 850,000-square-foot industrial property in Perris, Calif.

They also loaned $83.8 million to a joint venture between Lincoln Property Co. and Goldman Sachs for the construction and lease-up of Waterstone, an 894,000-square-foot, four-building industrial development in Kyle, Texas, near Austin.

In each transaction, Bank OZK was the senior lender, while Affinius originated the subordinate portion of the note.

The post InLight, Ares Management JV Lands $82M for Industrial Project appeared first on Commercial Property Executive.

Apple is working on a 250,000-square-foot AI server manufacturing facility in the Houston area as part of a four-year, $500 billion investment in the U.S. Completion is scheduled for 2026.

The firm will use the factory to produce servers for Apple Intelligence, its AI system for iPhone, iPad and Mac computers, previously manufactured outside the country.

Apple’s $500 billion plan also includes hiring around 20,000 new employees across the U.S. Targeted sectors feature R&D and software development, as well as AI and machine learning.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The technology giant also intends to grow its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion. The fund’s expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona, where it already employs more than 2,000 workers.

Also part of the $500 billion investment, Apple will establish a new manufacturing academy in Michigan and expand its R&D investments to advance innovative fields like silicon engineering. The firm will also expand its data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.

Long-time partners

Apple will develop the new factory together with long-time partner Foxconn, according to Reuters. Last year, the subsidiary of Taiwan-based Hon Hai Precision Industry Co. acquired an industrial facility and additional land to boost its AI server production in Houston. This expansion project is expected to bring $225 million in capital investment.

Foxconn also owns a 3,000-acre, multi-building development in Wisconsin dubbed Science and Technology Park, which focuses on advanced manufacturing and data infrastructure production, and a 6.2 million-square-foot industrial facility in northeast Ohio, used for electric vehicle production.

One of the strongest manufacturing markets

Houston is home to more than 7,000 manufacturers with a total annual production worth more than $75.1 billion, according to the Greater Houston Partnership. The metro also ranks second in the U.S. for manufacturing GDP.

Houston’s industrial pipeline at the end of last year reached 12.4 million square feet, the third largest nationally, surpassed only by Phoenix (22.4 million square feet) and Dallas (18.9 million square feet), according to the latest CommercialEdge report. The market’s vacancy rate clocked in at 7.2 percent as of December, 80 basis points below the national average.

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“We’ve reached a critical juncture where the surge in demand for decarbonization-enabling sites presents a significant opportunity for property owners,” JLL Division President–Global Industrials Meaghan Elwell told Commercial Property Executive. “They have the capabilities to enhance energy efficiency, adjust rental rates upward and ultimately boost their property values.”

To compile the report, JLL evaluated the leased footprint of major occupiers in 18 major industrial and logistics hubs in North America, Europe and Australia, assessing current supply and construction pipelines, and analyzing publicly stated sustainability targets and other relevant details. The 900 occupiers in the study represent about 850 million square feet of leased space. 

JLL found that occupiers are taking a stronger interest in decarbonization-enabling sites for a number of reasons, but top of this list is power availability and security. Increased automation, fleet electrification, the surge in advanced manufacturing, and competition with data centers for limited energy resources are reshaping market dynamics. 

Occupiers are thus prioritizing energy-smart buildings to drive operational efficiencies, and for good reasons. Energy-efficiency upgrades can reduce costs by 10 percent to 35 percent for industrial properties, the report explains. Fleet electrification can save logistics companies 6 percent to 8 percent in overall P&L.

Another factor is the age of industrial portfolios. As inventory ages rapidly—with 76 percent of industrial stock over a decade old in the U.S., and 69 percent in Europe—retrofitting buildings will be a strategy for owners to mitigate obsolescence risk, and allow them to attract top tenants.

READ ALSO: C-PACE in NYC: Will the Program Finally Take Off?

Also, the sector faces heightened operational security threats from climate risk, the report explains. That is due to complex operations and a greater presence in areas more vulnerable to extreme weather events.

Struggling to meet the demand

The demand for decarbonized sites is there, but the industrial market will struggle to meet that demand, though the overall results will vary by market and industry, JLL found. Across the 18 hubs researched in its study, 41 percent of projected demand for low carbon space will not be met by 2030.

In some instances, industrial and logistics landlords may be a little behind the curve in offering energy-efficient features.

“It’s particularly striking that more landlords and owner-occupiers haven’t leveraged industrial warehouse rooftops for solar installations—a commercial real estate decarbonization strategy that could help tenants to offset escalating energy costs while advancing carbon reduction objectives,” Elwell said.

Average lease terms are about seven years for industrial tenants, which means that leases inked now need to consider the 2030 targets of reducing emissions by 50 percent—an interim goal for many occupiers. So while the goal is a number of years off, the impact is now, with occupiers re-evaluating their current spaces in light of their future carbon reduction targets, the report explains.

Tenant activities are typically responsible for 90 percent to 100 percent of operational carbon emissions in industrial buildings, according to the report, compared to 55 percent to 75 percent in offices. So, collaboration between tenants and landlords, especially in the form of co-investments, will be key for the further decarbonization of the sector, JLL found.

The post The Future Demand for Industrial Is Decarbonized appeared first on Commercial Property Executive.

Miami International Tradeport is at 11130-11450 N.W. 122nd St. in Medley, Fla., just east of the Florida Turnpike and south of Okeechobee Road. The location provides easy access to Miami International Airport, PortMiami and major highways.

The buildings reportedly are suitable for logistics, distribution and manufacturing users and feature 30- to 36-foot clear heights, 54-foot column spacing and 130-foot non-shared truck courts, as well as ESFR sprinkler systems, LED lighting and ample parking.

Colliers’ EVP Erin Byers, Senior VP Lauren Pace, VP Ruben Suarez and EVP Steven Wasserman will be marketing the property, which has available spaces ranging from 34,000 to 140,000 square feet.

Mixed picture for Miami-Dade’s industrial market

The Miami-Dade industrial real estate market has seen net absorption fall to a negative 750,000 square feet over 12 months, as average vacancy has risen from 2.0 percent in 2022 to 5.5 percent at the start of this year, according to a January newsletter from Smith Commercial Property Group, of Doral, Fla.

“Tenant demand is slowing and rent growth has moderated after a sharp rise of 31.9 percent over three years,” Smith reported. “Despite these challenges, Miami remains a vital logistics hub with strong international trade links through its airport and port. Supply constraints, driven by geographical barriers like the Everglades, keep vacancy rates below the U.S. average, and rent growth is expected to pick up by 2026.”

This past November, BGO Cold Chain acquired Medley Cold Logistics, a 178,000-square-foot Class A cold storage facility in Medley, Fla., from Truist Securities for a reported $60 million. JLL arranged the deal for Truist. The one-story warehouse at 7600 N.W. 82nd Place is fully occupied by Quirch Foods.

The post Prologis Taps Colliers to Lease Miami-Area Business Park appeared first on Commercial Property Executive.

Apollo has entered into a definitive agreement to acquire Bridge Investment Group Holdings Inc. The deal is an all-stock transaction with an equity value of about $1.5 billion, anticipated to close in the third quarter of this year.

Bridge will function as an independent platform within Apollo’s asset management division, keeping its brand, management team and capital formation team. Executive Chair Bob Morse will join Apollo as a partner and head the real estate equity franchise.

Founded in 2009, Bridge had approximately $50 billion in residential and industrial assets under management as of December. The company, which went public in July 2021, will expand Apollo’s real estate equity platform and boost its origination capabilities in both real estate equity and credit.

Apollo Global Management aims to more than double its assets under management from about $700 billion to $1.5 trillion by the end of 2029, according to the Financial Times. Additionally, the company plans to increase its annual debt originations to $275 billion within the same timeframe.

Strategic advisors for the agreement

BofA Securities, Citi, Goldman, Sachs & Co. LLC, Morgan Stanley & Co. LLC and Newmark Group are acting as financial advisors, while Paul, Weiss, Rifkind, Wharton & Garrison LLP provides legal counsel and Sidley Austin LLP is acting as insurance regulatory counsel to Apollo.

J.P. Morgan Securities LLC is serving as financial advisor to Bridge, while Latham & Watkins LLP is acting as legal counsel. Lazard is working as financial advisor to the special committee of the Bridge Board of Directors and Cravath, Swaine & Moore LLP is acting as legal counsel.

The post Apollo to Acquire Bridge Investment for $1.5B appeared first on Commercial Property Executive.

Seefried Industrial Properties and a U.S.-based family office have signed a 152,014-square-foot long-term lease at their 1700 Madeline Lane facility in Elgin, Ill., with David C. Cook, a 150-year-old Christian organization. The nonprofit will use the space as its main distribution center.

CBRE brokered the deal on behalf of the tenant, while the landlord was represented by Cushman & Wakefield.

The recently built Class A speculative industrial property is within Chicago’s Interstate 90 Golden Corridor submarket, and features 32-foot clear heights, ESFR sprinkler systems, a 2,980-square-foot office space, a drive-in door and 22 exterior docks. Additionally, it includes 138 vehicle parking spots and 35 trailer parking spaces. David C. Cook will be the anchor tenant at 1700 Madeline Lane, with another 168,932 square feet still available for lease.

READ ALSO: Top 10 Markets for Industrial Deliveries

The asset was developed by Seefired Industrial properties as a two-building industrial campus totaling 465,360 square feet. Earlier this month, the developer sold the second building, a 144,414-square-foot facility at 1705 Madeline Lane, to an Atlanta-based plastic molded parts manufacturer.

Chicago ends 2024 with high vacancy

At the end of last year, Chicago’s vacancy rate was 9.7 percent, marking a 570 basis-point year-over-year increase, a recent CommercialEdge industrial report shows, mainly due to the excess supply added between 2021 and 2022. The national vacancy rate stood at an average of 8 percent.

Meanwhile, Chicago’s pipeline decreased by 5.6 million square feet year-over-year to 7.6 million at the end of 2024. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

The post Seefried JV Signs 152 KSF Chicago Tenant appeared first on Commercial Property Executive.

Los Angeles and Long Beach saw the most significant growth as they benefited from shippers that diverted cargo ahead of the first ILA strike in nearly 50 years, as well as efforts to move freight ahead of labor and tariff uncertainties. Baltimore and Montreal were the only ports that saw decreased volumes.

Savills anticipates that short-term strategies such as front-loading will continue in 2025, if trade policy volatility remains. Additionally, as supply chains diversify, trade will be reduced between U.S. ports and China.

“The data confirms importers are front-loading freight, yet warehouse leasing has been slow,” Mark Russo, vice president of industrial research for Savills, told Commercial Property Executive.

“We expect a demand recovery in port markets in 2025, driven by inventory movement and ultimately dependent on the consumer’s health.”

Danny Williams, executive managing director at Newmark, concurred that the front-loading of imports due to tariffs and cargo re-routes from Gulf and East Coast distributors has bolstered LA-LB’s TEU import volume in recent months.

“Longer rail dwell times, however, suggest a good portion of this cargo is destined for markets outside of Southern California,” Williams said.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

A moderate uptick in touring and leasing activities can be observed, according to his colleague, Dain Fedora, head of Southwest U.S. research at Newmark.

“However, occupiers are still proceeding with caution due to remaining uncertainty surrounding tariffs, inflation, etc.,” he said.

Port development activity brisk

CRG recognized the increasing demand for logistics and distribution space near major ports early on, making strategic investments in key markets like Savannah, Mike Demperio, the company’s executive vice president of the Southeast region, told CPE.

The Cubes at West Port and The Cubes at Interstate Centre II are examples of the company’s commitment to support supply chain efficiencies in proximity to the Port of Savannah, according to Demperio.

The Cubes at West Port is a 764-acre master-planned industrial park in Bryan County, Ga., approximately 25 miles west of Savannah. The development will include a 1 million-square-foot industrial facility for Lecangs.

The Cubes at Interstate Centre II is a 300-acre development within the broader Interstate Centre industrial park in Bryan County, Ga., approximately 25 miles west of Savannah.

“The project was designed to accommodate growing demand for logistics and warehouse space, driven in part by the recent expansion of the Port of Savannah, located about 30 miles east,” Demperio said.

CRG’s first building at the development, the 700,000-square-foot Building A, was leased to McKesson Medical-Surgical in November 2021. The second warehouse, the 465,250-square-foot Building E, has been completed, while Buildings B and C are currently under construction.

A fifth building is also planned. Upon completion, The Cubes at Interstate Centre II will comprise nearly 4.3 million square feet of Class A industrial space.

“As container volumes continue to rise, we anticipate strong demand for well-located, state-of-the-art distribution centers to help companies mitigate congestion and labor challenges while optimizing access to major transportation networks.”

Houston, Jacksonville, Georgia markets stay active

JLL reported that there have been substantial transaction volume increases in Houston (20 percent increase year-over-year) and Jacksonville (48 percent increase year-over-year), according to Trent Agnew, senior managing director & industrial group leader at JLL.

Notable deals such as Stonepeak acquiring over 1.8 million square feet of industrial space in Jacksonville and purchasing Houston’s Independence Logistics Park demonstrate strong interest from diverse investors who believe these markets will outperform the broader industrial market, including core funds, separate accounts and infrastructure funds, he said.

“Looking ahead, we anticipate a marked increase in activity in established markets like New Jersey and Southern California,” Agnew told CPE.

“As leasing demand accelerates in 2025, following the container growth experienced in 2024, and rents bottom out, these markets will offer an attractive entry point for investors who have been historically priced out.”

Earlier this year, Avison Young reported on two speculative Class A industrial buildings totaling 540,408 square feet that are coming to the new Northeast Georgia Inland Port.

Alliance Industrial Co. will break ground this quarter on the Alliance 985 Business Park, which is slated to be delivered in early 2026 at 3605 Atlanta Hwy Flowery Branch, Ga.

Avison Young has arranged the sale of the 66.75 acres of land needed for the development. The first building will be 113,536 square feet, and the second will be 426,872 square feet.

The post Port Activity Rebounds appeared first on Commercial Property Executive.

Demographics, deglobalization, digitization and decarbonization—four trends described by panelists at a CBRE Investment Management press conference as underlining any worthwhile investment during what many perceive to be the dawn of a new investment cycle.

These views lie in the backdrop of what Wei Luo, the company’s global research director highlighted as “sticky interest rates and higher for longer inflation.” Like many of its peers, the firm predicts two rate cuts this year, in the realm of 50 basis points.

Beyond the monetary realm, policy is a little less clear cut. Trump Administration tariffs against key trading partners could potentially increase demand for domestic manufacturing, though Luo sees these more as “starting points for negotiations” with Mexico, China, Canada and the European Union, and not persisting long-term.

Immigration, on the other hand, has led the firm to favor investing in real estate and infrastructure within metros experiencing more domestic than international in-migration. These are predominantly located in the Sun Belt. “We’re focused on the next Phoenix, Dallas or Nashville, Tenn.,” Luo said.

Sometimes, boring is better

As for how the economy and politics affect commercial real estate investing at the asset class level, panelists highlighted a shift from buying into historically appealing yet currently struggling sectors such as office to more trend-resistant, in-demand property types including modern industrial, health care, data centers and workforce housing.

The goal here is to be more resilient to the economy’s here-to-stay struggles and geopolitical uncertainty, all the while serving as a provider of liquidity. Bernie McNamara, the firm’s head of client solutions, labeled modern logistics as an example of this resilience, having experienced a “robust recovery” in 2024, following the industry’s lowest capital raising year since 2012. It’s also a provider of liquidity in a “liquidity-constrained market,” McNamara said.

READ ALSO: Industrial Report: Sector Transitions as Supply Shrinks

With these projects comes a need for infrastructure used to support them. What Robert Shaw, managing director of private infrastructure strategies refers to as a “boring” investor class is really just the electricity needed to power data centers, electric vehicle charging stations and industrial facilities. According to Grid Strategies, a power sector consulting firm, demand for electricity in general is projected to grow by 16 percent over the next five years. Houston’s CenterPoint energy, for example, experienced a 700 percent increase in its data center connection request queue in October.

Growth sectors of the future

Equally important to a resilient portfolio is a diversified one. Adopting a similar mindset to the infrastructure-dependent sectors, CBRE Investment Management has also taken a look at areas that rely on the physical presence of people; these include essential retail, health-care properties, self storage student housing, as well as market-rate and workforce housing. “These are the next-generation growth sectors,” said Lucy Fletcher, a fund manager with the firm’s indirect private real estate practice. “It’s about the opportunity to diversify across sectors and geographies.”

And investors may have less difficulty in actually picking some properties up, given a steep narrowing of bid-ask spreads, which reduced by an average of 17 percent in the first two weeks of this year, according to data from Market Axess. Many of the above properties, especially if they are acquired as part of a core investment strategy, “have durable cash flows at an attractive price,” despite capital declines of 20 to 30 percent in North America, said Liz Troni, a portfolio manager.

The post CBRE IM Panel Talks Next Generation of CRE Investing appeared first on Commercial Property Executive.

Standard Real Estate Investment Partners has joined forces with Brennan Investment Group to build Laredo Pinnacle Development II, a 433,000-square-foot industrial project in Laredo, Texas.

The cross-dock development will rise near Mines Road in the Pinnacle Industry Center, a roughly 1,400-acre master-planned industrial park located about 7 miles from World Trade Bridge and roughly 14 miles from Columbia Bridge.

The speculative development will allow for either single- or multi-tenant usage. It’s set to feature four drive-in doors, two truck courts, 156 dock doors, as well as 197 trailer parking spots.

This isn’t Brennan’s first Laredo project. Last year, the company teamed up with Grandview Partners to develop a 393,796-square-foot industrial facility also within the Pinnacle Industry Center.

Brennan launched its U.S. Border division in 2022 to invest across the entire U.S.-Mexico boundary, from San Diego to Brownsville, Texas. The firm looks to capitalize on the nearshoring phenomenon, Managing Principal Troy MacMane said in prepared remarks.

Industrial development near U.S.’s top trade port

In 2024, Laredo took the title for the number one port nationwide with $339 billion in trade, a figure up 5.9 percent year-over-year, according to U.S. Census data analyzed by WorldCity. The area’s constant growth spurred the city to earmark more than $2 billion in road and infrastructure improvements over the next two decades.

Development in this emerging industrial market is booming. Last May, SE Legacy Development broke ground on the first phase of a $7.4 billion master-planned project. And six months later, Realterm and Titan Development announced their intention to develop a 440,300-square-foot facility in this city.

The post Brennan JV to Build Industrial Project Near US-Mexico Border appeared first on Commercial Property Executive.

Dallas-based Provident Industrial is expanding Gateway Logistics Park in El Paso, Texas, with the development of Phase 4—three Class A industrial buildings totaling 497,280 square feet. The first three phases comprised three buildings with a total of 921,759 square feet and have since been sold.

Construction has already begun on Phase 4, which is located 7.5 miles north of the Ysleta-Zaragoza Port of Entry in Juarez, Mexico. The industrial park also has direct access to Loop 375, which offers connectivity to Interstate 10.

The three new assets are taking shape just east of the initial phases. When complete, Buildings 4 and 5 will each feature 147,420 square feet and a shared 205-foot truck court. Building 6 will have 202,440 square feet and feature a 130-foot truck court and 44 trailer parking stalls.

READ ALSO: Top 10 Markets for Industrial Deliveries

Harvey Cleary serves as general contractor, with Pritchard Associates overseeing construction management. Provident Managing Director Case Van Lare and Chris Martin, director of Southwest Industrial Development & Acquisitions, are leading the project.

The developer sold the property’s Buildings 1 & 2 to EQT Exeter in August. Building 1, which has 308,200 square feet, was completed in November 2023, while the 267,100-square-foot Building 2 came online in April 2024. The 345,394-square-foot Building 3 was also acquired by EQT in August.

Other Provident deals

Last month, Provident broke ground on a fully entitled industrial site at 500 E. Bardin Road in Arlington, Texas, in the heart of the Dallas-Fort Worth metro. The 161,408-square-foot A20 Logistics Center is scheduled for delivery in the first quarter of 2026.

Also in January, the developer sold two industrial buildings in Plano, Texas, to Rosewood Property Co. Delivered in 2021, the facilities were part of the second phase of Plano Commerce Center development that totaled 300,000 square feet. Building C had changed hands in June.

And in December, Provident sold the newly built Hall Road Distribution Center in Houston to David Wang and Yong Lin, owners of the local seafood logistics company, Ocean Kingdom. The 139,000-square-foot asset is just south of Hobby Airport along Beltway 8, offering direct access to Interstate 45 South.

The post Provident Industrial Breaks Ground on Phase 4 of El Paso Project appeared first on Commercial Property Executive.

Hamid Moghadam, who has led Prologis through its extraordinary growth as an industrial real estate investor and developer, will retire as the company’s CEO at the end of this year, the REIT said on Wednesday. He will then assume the role of executive chairman.

Moghadam will be succeeded by Dan Letter, the Prologis’ president and a 21-year company veteran.

Moghadam’s departure as CEO follows a four-decade run at Prologis and its predecessor, AMB Property Corp., which he co-founded 42 years ago in San Francisco. His career has been characterized by a series of landmark moves, starting with the company’s initial IPO in 1997.

Enterprise-level deals have been a hallmark of his leadership. The biggest by dollar value was Prologis’ $23 billion acquisition of Duke Realty. Completed in 2022, that acquisition added a 142 million-square-foot investment, development and management portfolio to Prologis’ footprint and included assets in 19 markets.

That followed the deal struck in 2019 for Liberty Property Trust. Highlights included the acquisition of a 107 million-square-foot operating portfolio and an expanded footprint in such markets as Chicago, Houston, Southern California, New Jersey and central Pennsylvania.

Yet another such acquisition unfolded in 2018, when Prologis bought DCT Industrial Trust for $8.4 billion, adding 71 million square feet to its operating portfolio. Such moves made Moghadam a frequent winner of CPE’s Industrial Property Executive of the Year award.

Letter, Prologis’ next CEO, started at AMB as a development manager in 2004. Since then, he has served in a variety of roles before becoming company president, including president of the U.S, central region and global head of capital deployment.

The post Moghadam to Step Down as Prologis CEO appeared first on Commercial Property Executive.

That quarter helped to create a 13 percent increase in full-year 2024 net lease investment volume, totaling $43.7 billion.

Industrial and logistics increased its share to 64 percent in the fourth quarter from 54 percent a year earlier. In 2024, net lease investment volume for industrial assets increased 87 percent from the prior year.

Net lease properties are characterized by a lease structure in which the tenant agrees to pay a portion or all of the taxes, insurance fees and maintenance costs in addition to rent.

Predictable cash flow

The net lease sector’s strong performance was generated by its predictable cash flow and mass appeal to investors seeking solid risk-adjusted returns, Will Pike, vice chairman of net lease properties for capital markets at CBRE, told Commercial Property Executive.

“We expect continued momentum this year, especially in retail and the industrial sector, as capital has proven to prioritize low-risk opportunities amid potential capital markets volatility in 2025,” he said.

Joseph Yiu, a partner at Leste Group, a global alternative investment manager, told CPE he was not surprised because the asset class has always performed well in times of uncertainty.

“With fundamentals and rent growth starting to deteriorate and plateau in other commercial real estate asset classes, 2 percent to 3 percent annual escalations on long-term net leases are beginning to look attractive on a relative value basis,” according to Yiu. “Cap rates on net leases have also widened over the last 24 months, so obtaining neutral or positive leverage is slowly becoming available for creditworthy borrowers.”

Deals consummated at year-end

As some traditional retailers struggle to maintain their customers or credit ratings, Damon Juha, partner & real estate practice vice chair at Saul Ewing, sees investors explore outside the traditional single-tenant NNN retail deals into other product types, such as industrial.

“There seemed to be a convergence of influences: investors responding to the Fed’s interest rate cuts, investors paying all cash (particularly for smaller deals such that the interest did not matter) and parties needing to consummate deals before year-end, particularly in light of the change of the administration,” Juha said.

READ ALSO: Understanding the Net Lease Reset

Net lease deals have historically provided a relatively low-risk alternative at price points where private investors can enter the market without financing, Juha added. ”Our clients continue to want to do deals, but time will tell if inflation risk and interest rates quell this sentiment.”

Growth in logistics and distribution facilities reflects trends like the continued expansion of e-commerce, supply chain shifts and the need for strategically positioned assets, according to Lanie Beck, Northmarq senior director, content & marketing research.

“Private investors drive the bulk of transaction activity, even as economic pressures like elevated interest rates and inflation influence the market,” Beck said.

Recent cap rate increases indicate a recalibration of risk, while stabilized single-tenant net lease properties continue to attract the attention of both private and institutional buyers, she observed.

“Industrial assets, as noted previously, have outperformed. On the other hand, retail and office sectors face mixed dynamics, with investors focusing on essential tenants and niche opportunities like health care or medtail,” Beck added. “Ultimately, the net lease market’s resilience comes from its knack for striking the right balance between stability and opportunity. The sector offers investors a relative haven in uncertain times.”

NNN energy leases

It’s also worth looking at the rise of triple-net multifamily leases, according to Sean Doak, chief revenue officer at PearlX.

“While most often employed in mixed-use developments, NNN energy leases that provide multifamily properties with energy amenities like solar power have been on the rise in the sector as a solution to various problems, most notably as a creative source of capital in a constrained investment environment,” Doak said.

“With elevated interest rates, limited capital availability, rising construction costs and aggressive building code regulations, multifamily developers are having to think outside of the box to make projects financially viable.”

Through an NNN energy lease, multifamily developers can lower development costs, comply with stringent regulations and enhance cash flow after the property’s delivery, all while offloading the insurance, taxes and maintenance overhead onto the tenant—a key feature of what makes NNN leases attractive in the first place, Doak said.

However, not all net lease is the same, Dave Sobelman, founder & CEO of publicly traded REIT Generation Income Properties, told CPE.

“It would be important to disaggregate the data into more defined categories considering more specific outlooks,” Sobelman said.

“For instance, industrial has become a very popular asset class since the advent of the pandemic. However, the bulk of industrial transactions in today’s market are typically sale-leaseback transactions to non-investment grade tenants who require capital and can no longer borrow at rates accretive to their balance sheets. These transactions were few and far between before 2020.”

Additionally, he noted that late in 2024, overall net lease transaction volume may have increased slightly from 2023, but it is still at historically low levels, reflected in a Northmarq report.

“These low levels of transactions have not been seen since approximately 2009 to 2010, immediately after the GFC,” he added.

The post Net Lease Investment Volume Surges appeared first on Commercial Property Executive.

The fund closed in May 2024 with $925 million in total commitment, surpassing its initial $750 million target and hitting its hard cap. With the closing of the Blackstone loan, Alterra has now secured more than $1 billion in financing for the fund. Other lenders previously providing financing to the fund include Truist Financial Corp., Bank of Montreal and Bank of America Corp., according to Bloomberg. It was Alterra’s first financing with the Blackstone team, which is actively deploying capital into compelling investment opportunities, including the IOS sector.

A vertically integrated investor, developer and operator of IOS, Alterra has acquired more than 300 sites in 36 states. The firm focuses on prime locations with access to essential infrastructure as well as properties that are situated in dense, infill industrial clusters surrounded by other IOS users. Last year, Alterra IOS was very active, purchasing 102 IOS properties.

One of its biggest milestones last year was closing on a 51-property portfolio sale to Peakstone Realty Trust in an off-market transaction valued at $490 million. The assets are located in 14 states and span 440 usable acres. The non-development portfolio, 45 of the 51 properties sold, was fully leased at closing.

READ ALSO: Why Industrial Outdoor Storage Will Always Be In

Justin Horowitz of Cooper Horowitz worked with Alterra IOS Venture III to market and source the Blackstone financing.

Alterra IOS deals

The loan finances the recent purchase of nearly 50 properties. Most were markets like Atlanta, Chicago and Tampa, Fla., Bloomberg reported.

One of the sites was 2201 E. Higgins Road in Elk Grove, Ill., in the Chicago market. The site, which has 4.8 usable acres and 35,000 square feet of warehouse space, was purchased in October with two other Chicago-area properties. The fully paved site is near O’Hare International Airport and within proximity of I-90, I-290 and I-294, providing access to the Midwest and beyond.

All three properties are fully leased to a global leader in the equipment rental industry. Alterra IOS also acquired 22634 S. Frontage Road East, a 4.4-usable-acre, paved site with 36,000 square feet of warehouse space that is near the city of Joliet, Ill. The location provides access to I-8- and I-55 and the CenterPoint Intermodal Center, the nation’s largest inland port. The third site in the portfolio is 300 W. Chicago Ave., a 4.9-usable acre property with 34,000 square feet of warehouse space. The fully paved site offers immediate highway access to Chicago and the Midwest points east and west through I-90 and I-94 and north and south through I-65.

More recently, Alterra IOS has expanded its industrial outdoor storage holdings in the Dallas-Fort Worth market to 10 assets with the January acquisition of four properties totaling nearly 35 usable acres. Each of the properties are located within 20 miles of downtown Dallas, providing access to the metro’s network of state and interstate highways, international airports and freight transportation.

In December, Alterra acquired three IOS sites totaling 23 usable acres in the Portland, Ore., market expanding the firm’s regional footprint to six assets. The sale included properties in Portland, Milwaukie, Ore., and Hubbard, Ore.

A month earlier, Alterra purchased a seven-property portfolio with assets in Dallas, Minneapolis, Indianapolis, Chicago, Cleveland, St. Louis and Nashville metro areas. The fully leased portfolio has a total of 23 usable acres.

Alterra also acquired four properties totaling 17 acres in the Greater Houston area in September.

The post Blackstone Provides $190M Loan to Alterra IOS appeared first on Commercial Property Executive.

MLB Network is planning to move all operations to 25 Market St. in Elmwood Park, N.J. The content platform of Major League Baseball will occupy the entire 207,000-square-foot building that was developed by Crow Holdings and completed last year. CBRE negotiated the lease on behalf of the tenant, while JLL represented the owner.

MLB Network will relocate from Secaucus, N.J., where it has been since its opening in 2009. The platform will be fully operational at the new location by the 2028 baseball season.

READ ALSO: Top Destinations for Corporate Relocations

MLB Network creates about 3,000 hours of live programming each year, and it is also a production house. The platform helps produce content for MLB Local Media, Friday Night Baseball on Apple TV+, Roku’s MLB Sunday Leadoff, and MLB’s digital platforms and partners. All together, MLB Network created more than 400,000 pieces of content for all of MLB’s platforms in 2024.  

Out of the ashes

The warehouse rises on the former site of the Marcal Paper Mills factory, which had been there for about 90 years. In 2019, most of the 36 structures on the Marcal site burned down in a fire.

The developer acquired the 12-acre parcel in 2022 and built the facility on speculative basis. A brick facade and black window mullions inspired by the original industrial property pair with large, translucent light boxes in a design that is new, but also plays tribute to the former factory.

Designed by M+H Architects, the facility has 32 dock positions, two drive-in doors, a 60-foot speed bay and an interior clear height of 40 feet. The building will house all of the network’s production studios and offices, along with MLB’s video tape library.

Scott Gottlieb, Brendan Herlihy, Greg Barkan and Elliot Bok of CBRE represented MLB Network in the lease. The JLL team of Rob Kossar, David Knee, Ignatius Armenia, Chris Hile and Ryan Milanaik assisted Crow Holdings Development. 

Vacancy plateaus in New Jersey’s industrial market

Leasing volume in the New Jersey industrial market came in at 12 million square feet in the fourth quarter, which was higher than the trailing eight quarter average of 9.5 million square feet, according to JLL. Third-party logistics represented much of the demand.

That volume of leasing, along with a slowdown in new construction deliveries, means that vacancy in New Jersey industrial is plateauing, JLL reports. Vacancy was up only 28 basis points on average each quarter in 2024, a moderation from 2023, when the increase averaged 77 basis points per quarter.

Product construction is at its lowest point in two and a half years in New Jersey, JLL notes. The volume of new development is expected to remain around the 15 million-square-foot mark.

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Kearny Real Estate Co. and Dune Real Estate Partners have completed Harbor Logistics Center, a 163,000-square-foot Class A industrial facility in Santa Ana, Calif.

The warehouse came online on the site of a former 200,000-square-foot office campus, which was demolished nine months prior. TDA Investment Group provided a $50 million construction loan for this project, with a maturity date set in 2027, according to CommercialEdge. CBRE will oversee the leasing efforts at the industrial property.

Harbor Logistics Center is at 3100 S. Harbor Blvd., close to John Wayne Airport and one mile from Interstate 405. Ports of Los Angeles and Long Beach are both within 30 miles from the property, while Los Angeles International Airport is 37 miles away.

The facility is the only industrial building with 36-foot clear heights within a 4-mile radius. The property features ESFR sprinkler systems, a 7,000-square-foot office component, 17 dock-high doors, two grade-level doors and heavy power capacity, as well as 241 vehicle parking spots and a 185-foot-deep truck court. CBRE Senior Vice President Keith Greer, together with Executive Vice Presidents Ben Seybold and Sean Ward, are its leasing brokers.

Orange County, the tightest industrial market

At the end of 2024, Orange County was the tightest industrial market in the nation for occupancy, a recent CommercialEdge report shows. The region closed the year with a 4.2 percent vacancy rate, way below the national rate of 8 percent. Orange County was also the most expensive market in the U.S. for rent prices, asking rents averaging $16.20 per square foot.

Meanwhile, the county’s under-construction pipeline was the second-smallest in the nation, totaling just 1.5 million square feet. One of the underway projects is Bake Freeway Business Park, a 380,000-square-foot campus in Irvine, Calif., developed by Tishman Speyer and Mitsui Fudosan America.

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LBA Logistics has purchased a 491,329-square-foot Class A industrial building in Port Wentworth, Ga., within metro Savannah. Lowe’s sold the asset for $46 million, according to CommercialEdge data. JLL represented the seller, which was also the former tenant.

The home improvement retailer had picked up the property in 2006 for $20 million, the same source shows.

The cross-dock facility has 32-foot clear heights, 106 dock-high doors, ESFR sprinkler systems,149 trailer parking spaces and 126 vehicle parking spots. At the time of the sale, the building was vacant.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The single-story facility is at 50 Innovation Drive, near interstates 95 and 16, providing easy access through the Savannah-Hilton Head area. Additionally, Savannah/Hilton Head International Airport is 4 miles from the property, while Georgia Port Authority’s Garden City Terminal is roughly 6 miles away and downtown Savannah is within 12 miles.

JLL Senior Managing Directors Britton Burdette and Dennis Mitchell, Director Jim Freeman, together with Executive Managing Directors Bob Currie and Tim McCarthy, negotiated on behalf of the seller.

Port of Savannah attracts industrial investment

Investors traded $455 million in industrial assets across the Savannah-Hilton Head market last year, according to CommercialEdge information. The Port of Savannah is one of the fastest growing in the nation, so demand for high quality space is strong. Of the 11 assets that changed hands in 2024, nine were Class A.

In November last year, Goldman Sachs Alternatives paid $100.6 million for a 942,210-square-foot facility. Scannell Properties sold the building, which is part of Rockingham Farms Logistics Park.

Transwestern Investment Group also made a big purchase in the metro in the second half of last year. It acquired Interstate West’s Building C, a 1.2 million-square-foot distribution facility in Ellabell, Ga. The seller was VanTrust Real Estate, which also sold Building A of that same industrial park, to Goldrich Kest.

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A three-building, 261,950-square-foot light industrial portfolio in the New York metro’s Rockland County has changed hands for approximately $62.8 million after nearly four years of ownership by Lincoln Equities Group and PCCP. Invesco Real Estate acquired the I-287 Multi-Tenant Light Industrial portfolio in Valley Cottage, N.Y.

JLL Capital Markets represented the sellers, which teamed up for the first time in April 2021 to purchase the three-building industrial portfolio from Sasson Real Estate Group in a deal valued at $48.5 million. The ensemble is now 97 percent leased to 17 tenants from a variety of industries including logistics, storage, sales, showrooms, servicing and health care.

The 64,000-square-foot 711 Executive Blvd. dates back to 1999 and is located on 9.3 acres, according to CommercialEdge. Completed in 2008, 616 Corporate Way and 618 Corporate Way sit on nearly 14 acres, encompassing 85,790 and 112,160 square feet, respectively.

READ ALSO: Manufacturing Demand for Industrial Space Is Mushrooming

The buildings have suites ranging from 2,720 to 42,075 square feet. They feature a mix of traditional warehouse space with clear heights up to 30 feet and shallow-bay light industrial space with 20-foot clear heights. 711 Executive Blvd. has a total of 234 parking spaces while the buildings at 616 Corporate Way and 618 Corporate Way have 170 parking spaces.

The location offers connectivity to the affluent and densely populated markets of Bergen County, N.J., Westchester County, N.Y., and New York City. Situated just off Route 303, the portfolio is 3 miles from Interstate 287 and less than 6 miles from the Mario M. Cuomo Bridge, formerly known as the Tappan Zee Bridge, which connects Rockland and Westchester counties. The highway system in the area provides access to more than 980,000 consumers within a 30-minute drive and more than 9.8 million consumers within a one-hour drive.

More Lincoln, PCCP deals

Based in East Rutherford, N.J., Lincoln Equities Group owns, operates, develops and manages commercial and residential properties throughout the Northeastern region and Europe. In April, Lincoln closed on a $53.5 million senior construction loan provided by PCCP to develop Belleville Logistics, a two-building, 15-acre last-mile logistics campus in Belleville, N.J.

In December, PCCP and another partner, Distribution Realty Group, began construction on Middle Tennessee Industrial Center, a four-building, 703,902-square-foot speculative project in Murfreesboro, Tenn., in the Nashville, Tenn., market. The project is slated for delivery later this year. A month earlier, PCCP formed a joint venture with CRG to develop The Cubes at Alpha, a 575,900-square-foot industrial park in Alpha, N.J.

Invesco industrial activity

Invesco has been active in both developing and acquiring industrial assets across the country. In August, Invesco and IndiCap completed the first phase of Virgin Industrial Park, three facilities totaling about 1 million square feet in Glendale, Ariz. Two more buildings are planned, bringing the park’s total space to 1.5 million square feet.

The firm paid $55 million for a 216,000-square-foot building in South Brunswick Township, N.J., last February. At the time of the sale, the property was fully leased to a third-party logistics company. That same month, Invesco and four partners who own Currwood Logistics Center, a 1.5 million-square-foot Hagerstown, Md., industrial campus, inked a full-building, 1.2 million-square-foot lease with an online restaurant supply company.

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LBA Realty, of Chicago, was the seller, according to information provided to Commercial Property Executive by CommercialEdge.

The two assets are Buildings D and E, at 16000 and 15716 Wolff Crossing, respectively. The assets were built in 2021. Both feature a 36-foot clear height, excess trailer parking, ESFR sprinklers and multiple points of ingress and egress.

They are fully occupied by three tenants, according to PCCP. Among these, information from CommercialEdge lists CEVA Logistics at 16000 Wolff Crossing and LBA Logistics at 15716 Wolff Crossing. A PCCP spokesperson was unable to provide additional information.

CEVA Logistics is one of the largest 3PLs and was purchased in 2019 by shipping titan CMA CGM, based in Marseille, France. The company’s headquarters building there was designed by renowned architect Zaha Hadid.

The AllianceTexas master plan

Elizabeth Creek Gateway is 20 miles north of downtown Fort Worth in the 27,000-acre AllianceTexas master-planned development. Features of use to warehouse/distribution tenants in AllianceTexas include two Class I rail lines (BNSF Railway and Union Pacific), a BNSF intermodal facility, a cargo airport (Perot Field Fort Worth Alliance Airport), FedEx and UPS sort hubs, and an Amazon air hub, as well as major thoroughfares connecting to the Greater DFW MSA and elsewhere.

In addition, Elizabeth Creek Gateway is 20 miles west of Dallas Fort Worth International Airport and 20 miles north of Fort Worth Meacham International Airport.

WPT Capital Advisors focuses on the U.S. industrial warehouse and distribution sector and currently manages about $3 billion of assets on behalf of various global investment partners.

Vacancy and rents both rise

Just last month, Alterra IOS grew its Metroplex industrial portfolio through the acquisition of four industrial outdoor storage properties totaling about 35 acres.

North Fort Worth, along with South Dallas, has been an active industrial space submarket within Dallas–Fort Worth, according to a fourth-quarter report from Marcus & Millichap. Together, the two areas added 25.5 million square feet over the 12 months through June 2024, boosting supply by 4.8 percent.

However, Marcus & Millichap reported that “nine of 10 submarkets had year-over-year vacancy increases, with the sharpest climbs recorded in North Fort Worth and DFW Airport.”

Still, of the six submarkets that have more than 100 million square feet of inventory, annual rent growth was the strongest in North Fort Worth and South Stemmons, also according to Marcus & Millichap.

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This shift is primarily due to an oversupply from record-setting development activity in 2021 and 2022, which have surpassed tenant demand, according to CommericalEdge data.

Leveraging its strategic location and well-developed rail and airport infrastructure, Chicago’s industrial market continues to demonstrate resilience and flexibility. Even with the pipeline shrinking to half of the previous year’s volume, the metro area remains a key player in industrial development. The Windy City delivered almost 14.9 million square feet of logistics space last year, while the investment volume reached roughly $2.7 billion.

Sales volume increases

Last year, Chicago’s industrial investment volume totaled approximately $2.7 billion, surpassing the $2.2 billion recorded in 2023. Despite this increase, assets traded at an average of $92 per square foot, up slightly from $89 the previous year. A total of 242 properties—amounting to approximately 32.6 million square feet—changed hands in the metro in 2024.

Only Kansas City ($42 per square foot) and Indianapolis ($73 per square foot) recorded lower numbers. Meanwhile, New Jersey ($213 per square foot), Dallas ($173 per square foot) and Phoenix ($162 per square foot) continued post high prices.

In one of the larger transactions of last year, Stonepeak purchased a three-building, 1.7 million-square-foot rail-served logistics portfolio for $125 million. The fully leased assets are part of CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

Industrial development still active

At the end of December, Chicago’s industrial sector had 7.6 million square feet under construction, according to CommercialEdge data. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

Near the end of last year, Trammell Crow Co. broke ground on the first building of Plainfield Business Center, an industrial campus to total more than 8 million square feet in Plainfield, Ill. Taking shape on approximately 52 acres at 26220 W. 143rd St., the property will feature 40-foot clear heights, 80 dock doors expandable to 160 and 211 trailer parking stalls. 

One month prior, CyrusOne also commenced construction on its second data center campus in Aurora, Ill. The project comprises two buildings totaling 446,000 square feet and will deliver an initial IT capacity of 40 MW with scalable capacity to meet future growth needs. The development is taking shape at 2725 Bilter Road.

Deliveries slow down

Last year, The Windy City delivered 41 properties totaling almost 14.9 million square feet—accounting for 1.4 percent of the metro’s total inventory, slightly lower than the national average of 1.8 percent. This amount was notably less than the 29.4 million square feet completed in 2023.

Among its peer markets, only Phoenix (32.7 million square feet) and Dallas (29.1 million square feet) recorded more completed space, CommercialEdge data shows.

HSA Commercial Real Estate delivered Highland Commerce Center of Somers, one of the largest speculative industrial buildings in Wisconsin. Located at 2655 113th Ave., the 918,884-square-foot distribution facility is directly off Interstate 94 at the Burlington Road Interchange in Kenosha.

Bridge Industrial also completed the 669,914-square-foot Building 2 and the 707,953-square-foot Building 3 of Bridge Point Melrose Park, a cutting-edge industrial campus that will exceed 1.5 million square feet in the coveted O’Hare submarket in Melrose Park, Ill.

Vacancy rate higher than the national average

At the end of December, the metro’s vacancy rate clocked in at 9.7 percent—above the 8 percent national average—climbing 570 basis points year-over-year and being the fifth-highest rate across top U.S. markets. Among peer markets, Indianapolis (9.8 percent) and Dallas (9 percent) recorded similar numbers.

In one of the largest recent industrial deals in Greater Chicago, Crow Holdings has signed a full-building lease at 9850 Mississippi St. in Merrillville, Ind. The more than 1 million-square-foot industrial facility is part of the 195-acre Silos at Sanders Farm master plan.

W. P. Carey also inked a 1.6 million-square-foot industrial lease at 701 Central Ave. in University Park, Ill. A global tech and logistics company occupies the entire building, marking it as one of the largest deals in the market.

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After years of accelerated expansion, the U.S. industrial sector is now moving toward a more sustainable growth pace. Although the macroeconomic context could pose challenges, specific markets will likely continue to outperform.

One such market is Dallas-Fort Worth, which had 18.9 million square feet of industrial space underway as of December, second only to Phoenix with 22.4 million square feet under construction, a recent CommercialEdge report shows.

The metro was also among the country’s top markets for industrial deliveries in 2024. Demand for such assets in North Texas is mainly supported by the surge in population, steady job creation and the more affordable cost of living compared to other parts of the country.

Commercial real estate investment and development firm Holt Lunsford Commercial has been active in this area since 1993. Recently, the company completed Gateway Crossing Logistics Park, a 127-acre project in Forney, Texas, developed in partnership with Principal Asset Management. The three-building campus encompasses almost 1.8 million square feet of leasable space. Commercial Property Executive asked Managing Principal Canon Shoults his views on the prospects for industrial in north Texas.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

How is the demand for industrial properties in Dallas-Fort Worth reflected in your portfolio?

Shoults: The growth of Holt Lunsford Commercial’s Dallas-Fort Worth industrial leasing and property management business has been lockstep with the surge in the industrial market here. Since 2020, the asset class as a whole has been the benefactor of the perfect storm in the North Texas area. The region is also strategically located to service several parts of the U.S., which is only compounded with our major international airport and multiple intermodal rail locations for both BNSF and Union Pacific.

Which submarkets in the area are currently more in demand and why?

Shoults: North Fort Worth and South Dallas represent the two submarkets with the majority of the bulk product. Subsequently, these two submarkets represented almost 70 percent of the overall market-wide lease absorption. Both offer access to key distribution routes, labor markets and rail intermodals. While still a very healthy overall industrial market, 2024 saw a decline in market-wide leasing activity. Much of this situation can be attributed to tenant uncertainty throughout the year related to the presidential election and interest rates. 

Considering the current economic climate, how do you expect the industrial market in north Texas to evolve?

Shoults: Forecasting into 2025, we expect the overall Dallas-Fort Worth industrial market to remain in demand, albeit at historical norms rather than unprecedented growth. However, rent growth is expected to slow or stall in some pockets due to current vacancy from recent deliveries. Manufacturing tenants, foreign companies and 3PL users will continue to be among the key drivers of absorption, as the region’s strategic location and transportation infrastructure continue to attract a diverse mix of businesses.

Despite the pre-COVID-19 normalization, we expect the region to outperform other parts of the country in 2025 as it continues to be the biggest benefactor of population growth, a favorable business climate and large-scale relocation efforts into the market.

What do prospective tenants look for when they choose to lease space at industrial facilities?

Shoults: In today’s market, understanding the tenant’s requirements is a must. This includes understanding their power needs, clear height, racking, office finish and parking needs.

For example, the Dallas-Fort Worth market is attracting more manufacturing-oriented tenants that need heavy power. There are important time and cost factors to discuss in those cases. In 2025, there will be increased demand from foreign companies and manufacturers. Tenants will continue to value Dallas-Fort Worth’s robust workforce availability and labor pools.

Tell us more about the industrial portfolio you manage and the ways you differentiate your properties in this competitive market.

Shoults: My team operates with a unique service philosophy that we’ve coined as our “10 Commandments of Industrial Leasing.” These principles guide every decision and help us create value for our clients. These “commandments” anchor how we operate and cover everything from how to make a standout first impression to what meaningful client follow-up looks like.

Another principle we follow is to ask thoughtful questions. We dig deep to understand the tenant’s needs and to thoughtfully sell the space. One of those key questions is: What are the drivers in selecting the right location? Details matter when helping a prospective tenant envision their future in your space. Understanding the details allows a brokerage team to maximize the value of the listing and formulate the best recommendation for the building owner for a shot at winning the deal. 

READ ALSO: Dallas Industrial Sales Take the Lead

How do you plan to expand your industrial footprint?

Shoults: HLC is doubling down on our relationships with key institutional owners. There is no shortage of institutional capital in today’s market, and the provider that can best service the market and create opportunities for the capital will continue to experience growth.

Development opportunities will continue to drive our business and identifying growing areas to build more industrial product is a priority. Additionally, identifying development opportunities allows us to partner with our clients and provide them opportunities to also expand their footprints.

What’s your outlook on the industrial sector for 2025 and beyond? Are there any emerging trends you’re keeping an eye on?

Shoults: As the Dallas-Fort Worth industrial market continues to evolve, we are seeing tenant needs and profiles change. Our market is evolving to attract more manufacturing uses and growing beyond just a distribution market. This also means that tenant needs are changing and in the coming years we anticipate access to power and fully climate-controlled facilities. A focus on functional industrial facilities will become a key factor when a tenant identifies a new facility.

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In fact, JLL predicts, manufacturing-related demand will reach 25 percent of U.S. industrial demand by 2028, up from less than 19 percent last year.

Manufacturing demand for space has already expanded in a major way, the report notes. In 2019, such demand represented only 4.3 percent of total industrial space demand. By 2024, that share was 18.8 percent, well over a three-fold increase.

This is a complete turnaround from before 2020. From 2018 to that year, manufacturing requirements decreased 1.9 percent each year, on average. Since 2020, those requirements have increased by 50 percent each year, on average.

Reasons for the change

“A confluence of economic, technological, and geopolitical factors is compelling manufacturers to reassess their operational strategies and locations,” Greg Matter, JLL’s executive managing director of industrial leasing told Commercial Property Executive.

The resurgence has come from a number of different industries, but the prime driver has been in such industries as batteries and electric vehicles, clean energy and semiconductors. The automotive industry, led by EVs and autonomous tech, is expanding, and so are aerospace, defense and AI.

READ ALSO: Sector Transitions as Supply Shrinks

The demand has been in a lot of places, but major markets such as Chicago, Dallas-Fort Worth and Phoenix are benefiting the most.

A number of factors are at play in pushing up demand for manufacturing space, including reshoring, which is at least in part a reaction to supply chain issues during the pandemic, as businesses seek more resilient and stable supply chains.

“As companies seek to optimize their production processes and bring operations closer to end markets, the demand for modern, technologically advanced manufacturing spaces is likely to continue its upward trajectory,” the report noted.

Political support

Political considerations are also important, and the political will seems to be there to support manufacturing growth.

“Amid the ongoing discourse surrounding tariffs, it is evident that there exists bipartisan support for the ‘reindustrialization’ of American manufacturing,” Matter said. “Our data projections indicate that this trend will persist over the coming decade.”

The new administration is pushing protectionist policies that will likely encourage domestic manufacturing, the report explained. Also, the former administration oversaw policies spurring domestic chip manufacturing and sustainable energy manufacturing, which has momentum that is unlikely to be undone.

New development is in the cards

Satisfying the surge in demand for manufacturing space will be more than a matter of retooling or expanding existing facilities, because the average age of existing manufacturing space in the U.S. is 51 years, with more than half between 30 and 60 years old. That is, they are leftovers from the previous golden age of U.S. manufacturing—before the 1980s.

The bulk of the older facilities are in such traditional manufacturing markets as Chicago, Detroit and New Jersey, which will see both new development and updating facilities to use the latest technologies. Markets such as Savannah, Ga., and Phoenix are leading the way in new facility development.

Besides the age of the building stock, other challenges for manufacturing will include finding suitable land, enough power and enough skilled labor, JLL reported.

In terms of land acquisition, a lot of the suitable brownfield sites have already been taken, the result of a “gold rush” for such sites between 2020 and ‘23, the report explained. Much of what is left is functionally obsolete, with the expense of redevelopment enough that greenfield options are also being considered.

As for power, manufacturers will be competing with data centers in the future for access to robust and cost-effective sources of electricity. 

Labor challenges

Manufacturers will also be competing against each other for relatively scarce skilled labor, especially as manufacturing processes become more advanced.

“The most significant challenge facing companies as they seek to scale up operations in the U.S. will be the long-term availability of skilled manufacturing talent,” Matter said.

When considering the establishment of new facilities, decision-making criteria are evolving beyond traditional metrics such as job creation, growth potential and industry concentration, Matter noted. Companies are now incorporating quality of life factors to enhance their ability to attract and retain a high-caliber workforce. 

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CenterPoint Properties has signed a full-building lease with 3PL firm RJW Logistics Group for a 976,954-square-foot industrial facility in Joliet, Ill. NAI Hiffman represented the owner.

The property is at 2903 Schweitzer Road inside the 6,400-acre CenterPoint’s Intermodal Center – Joliet/Elwood, North America’s largest inland port.

BNSF Railway and Union Pacific Railroads operate within the park, while U.S. Route 6 and Interstate 80 are about 3 miles from RJW’s newly leased facility. Downtown Chicago is some 50 miles northeast.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The cross-dock building features 40-foot clear heights, 70-foot speed bays, four drive-in doors, 100 loading docks, as well as 220 trailer and 387 car parking spots, among others.

RJW’s newest distribution center is part of its rapid expansion. As of December, the firm had more than 7.3 million square feet of warehouse space across the Chicago and Dallas transportation hubs.

NAI Hiffman Executive Vice Presidents Dan Leahy and Adam Roth represented the owner. The team negotiates on behalf of CenterPoint all the leases inside the master-planned intermodal development.

Windy City’s industrial leasing activity slows down

Chicago industrial leases dropped 25.8 percent year-over-year to 26.8 million square feet in 2024, according to a fourth-quarter report by Cushman & Wakefield. Manufacturing, transportation and warehousing companies comprised the bulk of activity, accounting for 62.9 percent of the new deals signed last year.

Agreements past the 250,000-square-foot mark decreased to 16 in 2024, down from 26 in 2023, the report revealed. John B. Sanfilippo & Son Inc. signed one such lease last June, when the food industry company committed to 444,600 square feet at Venture One’s 729,823-square-foot facility in Huntley, Ill.

As fewer deals closed, the vacancy rate climbed 20 basis points over the year, reaching 4.7 percent in December, the same source shows. Despite increasing, the index remained on par with the 10-year average of 4.7 percent.

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Cannon TTM, a Cannon Commercial division, has obtained $60 million in financing to acquire a 2 million-square-foot industrial portfolio comprising two buildings, one each in Jacksonville, Fla., and Hammond, La. The properties are both fully leased to regional grocery chain Winn-Dixie. JLL secured the 10-year, fixed-rate CMBS loan.

The Jacksonville location is 12 miles from Jacksonville International Airport in the Riverside submarket, while the Hammond site is between New Orleans and Baton Rouge, La. Both assets are considered mission-critical distribution centers for Winn-Dixie, a subsidiary of Southeastern Grocers, which is owned by ALDI.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The long-term occupancy by Winn-Dixie and the assets’ locations in growing Southeast markets made this deal an attractive one for lenders, according to JLL Senior Managing Director Jeff Sause, who facilitated the deal along with Associate Joshua Blank.

Cannon TTM is an arm of Cannon Commercial, a private real estate investor associated with Tinder founder Justin Mateen and his brother Tyler Mateen. The firm recently acquired Wilshire Rodeo Plaza in Beverly Hills, Calif., from Nuveen for $211 million, in the largest transaction in that city since 2019.

CMBS lending surged in ‘24

CMBS lending has bounced back from interest rate doldrums in 2022 and ‘23, with issuance rebounded in 2024 to $108 billion, marking a 168 percent increase from 2023, according to Trepp. 

The resurgence was led by $70.7 billion in single-borrower issuance, indicating borrowers’ preference for floating-rate loans, which seems to represent a belief that interest rates will continue to decline.

Industrial loans via CMBS totaled only 8 percent of last year’s volume, Trepp reports. Retail loans were about a third of the total, however, compared with about 21 percent in 2019.

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In terms of completions, only 358 million square feet of industrial space came online in 2024, a significant drop from the past three years, yet still higher than any year before 2020, according to CommercialEdge data. This year, deliveries are expected to decrease further, with only 236 million square feet starting construction in 2024.

Here are last year’s top 10 markets for industrial deliveries in the U.S., based on CommercialEdge data. These metros accounted for almost half of total completions nationally.

1. Phoenix

Phoenix led the nation in completions, contributing more than 9 percent of the total U.S deliveries last year. The metro saw 162 projects come online, amounting to 32.6 million square feet.

This figure is slightly lower than the 34 million square feet delivered in 2023. However, the market had the second-largest under-construction pipeline as of December, with 22.4 million square feet in the works.

In August, IndiCap and Invesco Real Estate completed the first phase of Virgin Industrial Park, consisting of three buildings totaling about 1 million square feet in Glendale, Ariz. Upon full build-out, the campus will include two more facilities, bringing the industrial park to 1.5 million square feet.

2. Dallas

Despite ranking second nationally among the top markets for industrial deliveries, Dallas' completions dropped by 58 percent year-over-year as of December. The metro saw 29.1 million square feet delivered across 114 projects, making up 8 percent of national deliveries.

However, Dallas-Fort Worth continues to thrive as the national leader of cold storage development. Between 2019 and 2024, eight such facilities totaling 2.9 million square feet came online. At the end of the year, The Metroplex also had the third-largest under-construction pipeline, with 19.1 million square feet underway.

One of the largest projects completed in the metro last year was Transwestern Development Co.’s Mid-Cities Logistics, a five-building, 908,300-square-foot logistics hub in southeast Fort Worth, Texas. These facilities are designed for storage, distribution and light manufacturing purposes.

3. Inland Empire

With 70 projects totaling 20.8 million square feet coming online last year, the Inland Empire rounded out the top three markets for industrial deliveries. This figure accounts for almost 6 percent of the U.S. total.

The metro’s completions pipeline mirrored national industrial trends, shrinking from the 26.5 million square feet registered in 2023. One of the largest facilities delivered last year is Affinius Capital’s Building 1 at Beaumont Crossroads Logistics Park II in Beaumont Capital, Calif., spanning almost 1.9 million square feet.

In terms of under-construction pipeline, the metro holds steady. As of December, the Inland Empire had 9.1 million square feet underway across 21 projects.

4. Chicago

Chicago’s industrial deliveries in 2024 amounted to roughly 13.7 million square feet. The metro saw 40 developments coming online, a steep decline from the 83 projects totaling 29.3 million square feet completed in 2023.

Last year, Bridge Industrial completed two buildings within Bridge Point Melrose Park, measuring almost 1.4 million square feet. Upon full build-out, the Melrose Park, Ill., campus will span more than 1.5 million square feet.

Additionally, the metro had 20 projects under construction, which will add about 7.6 million square feet upon delivery. Trammell Crow Co. is currently working on one of the largest developments in the market. The firm broke ground on the first building at Plainfield Business Center in Plainfield, Ill., which is expected to encompass more than 8 million square feet when completed.

5. Houston

Houston’s industrial deliveries in 2024 comprised 67 projects totaling 12.2 million square feet. This represents only 3.4 percent of the national completions and marked a significant decrease from the 29.5 million square feet that came online in 2023 across 121 developments. The metro also had 12.9 million square feet under construction as of December.

Last summer, Capital Development Partners completed Cedar Point Logistics Center Building II, an 800,405-square-foot facility in Baytown, Texas. The building is part of a 90-acre campus that also encompasses an 800,500-square-foot warehouse completed in 2022.

6. Savannah-Hilton Head

Savannah-Hilton Head’s industrial deliveries last year were nearly half of those registered in 2023. The metro saw only 24 projects spanning 11.8 million square feet come online, about 3.3 percent of the national total.

However, the market has a silver lining. As of December, the metro had 14 developments underway totaling 23.9 million square feet, the largest under-construction pipeline in the U.S.

That number is expected to increase as more projects break ground. This month, Trinity Capital and Barings started construction on the second phase of Horizon 16 Industrial Park in Savannah, which will add 1.5 million square feet across six buildings.

7. Las Vegas

Last year, Las Vegas saw more than 11.2 million square feet of industrial space completed across 43 projects. As a result, it was one of the top 10 industrial markets for deliveries. The metro had slightly larger facilities delivered compared to 2023, when 49 developments totaling 10.9 million square feet came online.

The largest warehouse completed last year is NorthPoint Development’s Building 2 within North Vegas Logistics Center, according to CommercialEdge. The facility spans 1 million square feet and is part of a two-building campus totaling more than 2 million square feet.

8. Charlotte

Charlotte’s industrial deliveries dropped by more than 25 percent year-over-year as of December. Last year, the metro saw 37 projects spanning 11.1 million square feet come online. Additionally, the market’s under-construction pipeline at the end of the year clocked in at 5.7 million square feet.

One of the most notable deliveries in the area is The Silverman Group’s 1.4 million-square-foot 1305 Liberty Ridge Road in China Grove, N.C. The Class A fulfillment center was a build-to-suit project for Macy’s.

9. New Jersey

Last year, New Jersey saw more than 10 million square feet of industrial space delivered across 49 projects. This represents a nearly 25 percent decrease from 2023, when 59 logistics hubs totaling 14.2 million square feet were completed.

Following a period of robust construction and leasing activity, the metro is now experiencing a slower pace due to rising vacancy rates and increasing local opposition to new developments. As of December, the market had 5.5 million square feet under construction across 28 projects, the smallest pipeline among these metros.

In June, Bridge Industrial completed Bridge Point 999, a 291,758-square-foot building in South Brunswick, N.J. The developer financed the construction with a $53.5 million loan originated by Mesa West Capital.

10. Austin

In the last decade, Austin has emerged as a prime location for both commercial and residential development. Last year, the metro maintained its status as one of the top markets for industrial deliveries, with 10 million square feet across 88 projects completed, with no single facility exceeding 400,000 square feet.

These numbers are consistent with those in 2023, when 10.6 million square feet came online across 82 developments. Additionally, the market had 13.5 million square feet under construction across 63 projects as of December.

The post Top 10 Markets for Industrial Deliveries appeared first on Commercial Property Executive.

The collection includes warehouse, laboratory and open office spaces on four parcels. A fifth parcel, of about 2.6 acres, provides additional parking. The location has immediate access to Interstate 64 and thereby easy connections to the port and nearby military bases and shipyards.

The assets were 84 percent leased by a total of 37 companies at the time of sale. About 60 percent of the roster is made up of medical and government-related tenants, including Sentara Healthcare and Chugach Government Solutions, Eric B. Robison, executive vice president of Capital Markets at Thalhimer, told Commercial Property Executive.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

Robison added that more than three-quarters of the occupied GLA has executed new leases or renewals since August 2020, showing the tenant roster’s resilience through the COVID-19 pandemic.

The buildings in the portfolio are:

•  Battlefield Corporate Center, at 535 Independence Parkway (one story, 96,720 square feet);

•  Greenbrier Technology Center I, at 814 Greenbrier Circle (one story, 97,194 square feet);

•  Greenbrier Technology Center II, at 816 Greenbrier Circle (two stories, 82,229 square feet); and

•  Greenbrier Circle Corporate Center, at 825 Greenbrier Circle (two stories, 126,874 square feet) and 1801 Sara Drive (105,797 square feet).

The Class B properties were completed between 1981 and 1987, according to information provided by CommercialEdge.

Robison and Bo McKown of Thalhimer’s Capital Markets Group, together with Eric Berkman and Kevin Sidney with Cushman & Wakefield’s Capital Markets team in Washington, D.C., represented the seller. Financing was sourced by the Cushman & Wakefield debt team of Michael Zelin, Marshall Scallan and Ryan McMahon.

Temporary lull

The Hampton Roads industrial space market is benefitting from clean energy and rail infrastructure improvements at the Port of Virginia, even as market activity moderated toward year’s end, in part of over labor concerns at the port, according to a fourth-quarter report from Cushman & Wakefield.

Industrial vacancy was up slightly, to 4.4 percent in December, but Cushman & Wakefield anticipates absorption gains this year.

In September, a joint venture of Rockefeller Group, Matan Cos, Mitsubishi Estate New York, Chuo Nittochi and Taisei USA LLC started construction on the first phase of Port 460 Logistics Center in Suffolk, Va. Upon completion, the property will comprise about 5 million square feet.

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Pinkard’s 2 million square feet of office, flex/office, warehouse/industrial and retail space in the Maryland region have been added to MCB’s nationwide portfolio of operating assets totaling about 15 million square feet.

Pinkard co-founder Katharine Pinkard has been named senior managing director of property management for MCB Real Estate. MCB noted that its current property management division leader, Marty Lastner, recently announced plans to retire.

The acquisition boosts the number of MCB personnel in asset and property management from about 36 to about 50, an MCB spokesperson told Commercial Property Executive.

READ ALSO: CRE Compensation, Hiring Trends

MCB noted that it has in recent months acquired several varied assets that are widely separated geographically.

For example, this past September the company purchased a 368,000-square-foot Class A industrial facility in Howell Township, N.J., for $69.9 million. The seller of the newly completed Howell 1 was Active Acquisitions. MCB also signed a 15-year, full-building lease with a third-party logistics company.

The same month, a joint venture of MCB and a fund managed by DRA Advisors acquired Falcon Ridge Town Center, a fully leased 273,424-square-foot retail center in Fontana, Calif., for $64.7 million.

Given this steady growth, MCB President Gina Baker Chambers emphasized in a prepared statement the Pinkard acquisition’s importance in beefing up the company’s internal team.

Last June, Baker Chambers spoke at length with CPE about the challenges of development projects that are financially sound, environmentally sustainable and responsive to community needs.

Family history

Interestingly, the acquisition represents a kind of marriage between notable families with a historical connection. The Pinkard tradition began in 1922 with one W.C. Pinkard, whose grandson Walter Pinkard Jr. was in charge by the 1970s. Katherine Pinkard and her father, Greg Pinkard, founded Pinkard Properties in 2012, continuing the multi-generational tradition.

But here’s the twist. One of Greg’s brothers, Peter Pinkard, in 2007 was a co-founder of MCB Real Estate; he remains there as a managing partner.

Pinkard Properties’ Greg Pinkard meanwhile will serve MCB Real Estate in an advisory role.

Jarnell Swecker, managing director/marketing at MCB Real Estate, told CPE that while there hasn’t been any formal collaboration between the two companies (until now), “Baltimore is a close-knit market where everyone knows everyone … and Pinkard Partners, with their breadth of experience, matched up as the perfect partner for what MCB wanted to accomplish.”

The post MCB Real Estate Acquires Pinkard Properties appeared first on Commercial Property Executive.

Dubbed Chicago Shallow-Bay, the portfolio comprises more than 390,781 square feet of space in four key submarkets, including North DuPage County and the I-55 corridor. These submarkets continue to outperform the Greater Chicago industrial market, according to a company statement.

Twenty-eight industries are represented in the spaces. Cumulatively, the properties are 91 percent leased to 37 tenants. Westmount would not disclose the price or specifics about the assets.

In 2022, Westmount divested an industrial portfolio consisting of 21 buildings near O’Hare International Airport, according to the same source. Its current footprint in the market totals 4.8 million square feet.

That same year, the company also sold a 709,652-square-foot industrial asset in metro Nashville, Tenn. Located at 245 Couchville Industrial Blvd. in Mt. Juliet, in the Wilson County submarket, 840 Logistics Center was fully leased at the time of sale.

Chicago’s industrial strength

JLL calls the Chicago MSA the second-largest industrial market in the U.S. and the market to watch in 2025. Recent activity reflects that reputation.

T2 Capital Management is currently financing the construction of two industrial buildings in the Chicago area, according to John Felker, its co-CIO.

“Chicago’s industrial market has fared better than other major industrial markets,” he told Commercial Property Executive. “Vacancy rates in Chicago are below the national average, and development of new space slowed considerably in 2024. This has kept supply more in check with demand growth.”

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Chicago is a prime location for industrial assets for multiple reasons, according to Felker. Nearly 50 percent of Americans live within a one-day drive of Chicago; however, other midwestern cities share that characteristic. Chicago’s workforce and transportation infrastructure set it apart from other midwestern industrial hubs, Felker added.

Chicago-based developers Range Group and HSA Commercial Real Estate plan to develop a pair of 35,000-square-foot small-bay warehouses on Chicago’s Near West Side—at 2519 W. Fulton Ave. and 2520 W. Lake St.

The goal is to capitalize on the growing demand for Class A infill industrial facilities in established population centers, according to Robert Smietana, president & CEO of HSA Commercial.

Developed on a speculative basis, the warehouses can accommodate multiple tenants or a single user. They will offer 28-foot clear heights, individual drive-in doors, drive-in docks capable of accommodating 40-foot trucks, and secured automobile parking. Demolition of existing structures on the parcels is expected to begin this spring, with the new buildings being completed by early next year.

“Downtown Chicago and its surrounding neighborhoods are some of the nation’s fastest-growing areas yet are drastically underserved in new warehouse supply, particularly for smaller users,” Smietana told CPE. “Growth industries such as e-commerce and manufacturing will drive competition for urban industrial space in the near future.”

In December, there was ground-breaking for the final phase of Pullman Crossings with Ryan Cos.’ 160,000-square-foot development in the South Side that is expected to come online in August.

Not so boom and bust in Chicago

“Boom and bust cycles in the sector have been more muted throughout Chicago versus the coasts, as deliveries and a construction pipeline support Chicago’s below market vacancy rates, with the national average at 7 percent and Chicago at 5.5 percent,” said Laura Dietzel, real estate senior analyst with RSM based in Chicago.

Deliveries over the last 12 months comprise just 1 percent of Chicago’s total inventory while the national figure is about 2 percent or double that, she added.

“Landlords in Chicago are well positioned to face less supply-side competition than in other markets through the near term,” Dietzel said.

Chicago’s central location also makes it a critical logistics hub in the U.S., with proximity to major airports, railways and highways allowing for effective distribution.

“Lastly, there’s an underlying macro-trend related to re-shoring of critical manufacturing to the U.S., which the current administration’s focus will bolster.”

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James Campbell Co. has acquired the 663,882-square-foot Beltway Crossing Northwest industrial park in Houston. The deal also included a 7.4-acre land parcel, which may be developed into a 150,000-square-foot project. BGO previously owned the fully leased campus, CommercialEdge data shows.

In 2019, Sun Life Financial acquired a majority stake in both Bentall Kennedy and GreenOak Real Estate, merging the two entities into BGO. The resulting company assumed ownership of all existing assets throughout the U.S., including Beltway Crossing Northwest.

The property last traded in 2016, when Panattoni Development sold the park, according to CommercialEdge. That same year, the campus became subject to an acquisition loan of $30.1 million held by State Farm with a maturity date set for 2028.

READ ALSO: 5 Promising Opportunities in an Uncertain Market

Located at 11710, 11720 and 11810 N. Gessner Road, the campus is about 17 miles southwest of the George Bush Intercontinental Airport and about 30 miles northwest of the port of Houston.

The three-facility industrial park debuted between 2015 and 2016. The rear-load, 67,200-square-foot shallow-bay warehouse includes a 24-foot headway, while the two cross-dock facilities spanning 155,682 and 441,000 square feet feature 32-foot clear heights. The campus comprises a total of 174 dock doors and 10 drive-in doors.

The tenant roster includes Amazon, Wärtsilä North America—an operator in the marine and energy industries—and Advance Auto Parts.

Hawaii-based James Campbell Co. owns 93 industrial, office and retail assets throughout mainland U.S. The company recently closed another deal in Houston with the acquisition of the 2013-completed, 240,000-square-foot Point North Sort Center.

Industrial deals in metro Houston

Greater Houston’s industrial sale volume landed at $724 million in 2024, according to a report by Partners Real Estate. A total of 719 industrial and flex assets changed hands last year for an average of $115 per square foot. The average cap rate stood at 7.9 percent.

A significant metro Houston deal closed in December when Stonepeak acquired a 2.3 million-square-foot logistics collection from Starwood Capital Group. The six-asset portfolio in La Porte, Texas, traded for $244 million.

Two months earlier, MDH Partners purchased Link Logistics’ Cedar Port IKEA in Baytown, Texas. The 996,482-square-foot industrial park comprises two facilities that came online in 2017.

The post James Campbell Snaps Up 664 KSF Houston Industrial Asset appeared first on Commercial Property Executive.

Rockpoint continues to grow its industrial portfolio with the acquisition of Uxbridge Distribution Center, a cross-dock facility of more than 607,000 square feet in Uxbridge, Mass.

Scannell Properties sold the asset for $120 million, according to the Worcester Business Journal. The publication stated it was the largest property sale in Central Massachusetts since 2020.

Completed in 2023, the distribution center occupies 70 acres at 40 Lackey Dam Road in the Worcester, Mass., submarket. While most of the property is in Uxbridge, some of it lies in the towns of Sutton and Douglas, Mass.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The warehouse has a 36-foot maximum clear height and 127 docks. The property also includes adjacent industrial outdoor storage space and a parking field. Rockhill Management, Rockpoint’s dedicated property services affiliate, will be the property manager.

McKesson Corp. occupies approximately 73 percent of the facility, having signed a 15-year lease in December 2023 for 444,413 square feet. A Lincoln Property Co. report for the Greater Boston market noted it was the largest industrial deal closed in Massachusetts in the fourth quarter of that year.

Rockpoint industrial growth

Rockpoint has made 13 industrial investments with more than 12 million square feet since 2020. Since 1994, Rockpoint has invested in or committed to invest in 503 transactions with a total peak capitalization of about $80 billion. The firm’s co-founders have also sponsored 19 investment vehicles and related co-investment vehicles through Rockpoint and a predecessor firm.

In January 2024, Rockpoint raised $5.1 billion in aggregate equity capital commitments, including the close of Rockpoint Real Estate Fund VII at $2.7 billion. Fund VII targets opportunities in the U.S. across real estate sectors including industrial, multifamily, single-family rental, hospitality and select office investments.

More recently, Rockpoint formed a strategic partnership with Greystar to continue the development of Gateway Logistics Center in St. Petersburg, Fla. The project is the largest industrial development in Pinellas County in more than two decades.

The firm is also developing Race Track Logistics, a trophy industrial park in Pompano Beach, Fla., that will total about 1.5 million square feet at full build-out. The first phase, comprising four buildings totaling 621,243 square feet, is slated for completion in the summer.

The post Rockpoint Pays $120M for MA Industrial Asset appeared first on Commercial Property Executive.

After a surge in development that added over 1.1 billion square feet in 2022-2023, supply slowed in 2024, with 358 million square feet delivered. The pipeline is shrinking further, with just 236 million square feet of starts recorded last year and little growth expected in 2025.

Meanwhile, development is shifting toward manufacturing and data centers rather than warehouse and distribution space. Manufacturing starts have totaled nearly 150 million square feet since 2022, driven by rising investment, though cuts to clean energy incentives could impact future growth.

Vacancy rates have climbed from record lows, reaching 8 percent nationally in December 2024, with stabilization expected before a gradual decline in late 2025. While fundamentals remain solid, potential tariffs, labor market shifts, and local development restrictions present challenges for the sector.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

At the end of December, 349.6 million square feet of industrial space was under construction nationwide, accounting for 1.7 percent of the total inventory, according to CommercialEdge data. Industrial starts fell to just 236 million square feet in 2024, down 35 percent from 2023 and over 60 percent from 2022. Weaker demand and high borrowing costs have slowed development, with no major rebound expected this year.

Phoenix led the nation in industrial development as a share of inventory, with 5.7 percent of its stock—22.3 million square feet—under construction. Other active markets included Kansas City, Mo. (3.9 percent or 11.5 million square feet), Memphis, Tenn. (3.5 percent or 10.5 million square feet), Philadelphia (2.4 percent or 11 million square feet), Denver (2.4 percent or 6.8 million square feet), and Columbus, Ohio (2.2 percent or 7.1 million square feet).

Industrial rents climb as vacancy rates rise

In December 2024, the average national rent for industrial properties rose to $8.40 per square foot, up three cents from November and 6.6 percent year-over-year, according to CommercialEdge.

Port markets remain among the top performers for in-place rent growth but no longer stand out as significantly. New Jersey led with a 9.8 percent annual increase, followed by Miami (9.6 percent), the Inland Empire (8.7 percent), and Atlanta (8.7 percent). While Southern California previously saw rapid rent hikes, growth slowed notably in 2024.

The Midwest experienced the weakest rent growth, with in-place rents rising just 2.0 percent in Kansas City, 2.3 percent in Detroit, and 2.4 percent in St. Louis. Over the past year, newly signed leases averaged $10.36 per square foot—$2.20 above the overall average, CommercialEdge data shows. Miami recorded the highest premium for new leases, with recent deals exceeding market rates by $5.65 per square foot, followed by Bridgeport, Conn. ($4.38) and Boston ($3.70).

Meanwhile, the national industrial vacancy rate climbed to 8.0 percent in December, a 50-basis-point increase from the previous month. The gap between in-place rents and new lease rates narrowed to $2.04 per square foot, reflecting a continued shift toward more balanced demand for industrial space.

Read the full CommercialEdge report.

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A joint venture of Ryan Cos. and Alidade Capital has broken ground on Chandler Freeways Business Park, a 190,475-square-foot industrial development in Chandler, Ariz. The duo will convert a 175,654-square-foot existing office building as part of the project. Completion is scheduled for the fourth quarter this year.

Plans call for the conversion of the two-story office building into an 87,600-square-foot, single-story industrial facility. Additionally, the developers will build a second, 102,875-square-foot industrial asset. Butler Design Group provided design services.

Chandler Freeways Business Park will feature clear heights between 28 and 32 feet, speed bays ranging from 40 to 60 feet, as well as a total of 26 dock-high doors and 11 grade-level doors.

READ ALSO: Phoenix Industrial Development Remains Fast-Paced

The development is taking shape at 6955 W. Morelos Place, less than 1 mile from Highway 202 and about 19 miles southeast of downtown Phoenix. The Phoenix Sky Harbor International Airport operates 12 miles away.

Ryan Cos.’ office-to-industrial ventures

In November 2024, Ryan purchased the office property for $16.8 million from Landwin Management Co. Verizon had leased the asset since 2004. The office building didn’t start out as such. It was originally built as an industrial facility and later converted into an office building. Now, due to its conversion-minded design, it’s slated to go back to its initial usage.

This isn’t the first time Ryan and Alidade partnered to turn office into industrial in metro Phoenix. The duo joined forces last June to redevelop the 128,048-square-foot Red Mountain Corporate Center in Phoenix into Innovate48, a 163,000-square-foot industrial facility. Completion is expected next quarter.

Metro Phoenix industrial completions hit a new record

Industrial completions skyrocketed last year, with 42.9 million square feet brought online across metro Phoenix, setting a new record, according to a Cushman & Wakefield report. The supply glut led to seven consecutive quarters of vacancy increases, bringing it up to 12.7 percent in December.

Several projects wrapped up during the last quarter. Rockefeller Group completed a 418,400-square-foot distribution center in Surprise, Ariz., while Thompson Thrift brought online the 400,000-square-foot first phase of the Germann Commerce Center in Phoenix.

The post Ryan Cos. JV Starts Office-to-Industrial Conversion in Phoenix appeared first on Commercial Property Executive.

The facility will serve as a centralized hub for Southwire’s distribution and shipping activities in West Georgia, combining the operations of the company’s three existing distribution sites in Villa Rica, Ga.

The new development, which will become one of Southwire’s largest facilities, is expected to be completed by the third quarter of 2026. A year ago, Southwire opened a distribution center in Dallas-Fort Worth.

Georgia continues to bolster its status as the epicenter of industrial real estate in the Southeast due to textbook key factors such as extensive infrastructure connectivity, numerous ports and intermodal terminals, as well as business-friendly state policies, according to Avison Young’s Chris Hoag, CCIM.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

“National capital market investors who activate these distribution centers and industrial projects have taken a keen interest in Georgia as they look to capitalize on the Southeast region’s continued population growth,” Hoag said.

Spec industrial projects meet rising demand

In January, Hoag and his colleagues Jason Holland, CCIM, and Andrew Joyner, CCIM, arranged the sale of 66.8 acres of land near the new Northeast Georgia Inland Port on behalf of the buyer, Alliance Industrial Co., for the development of two speculative industrial buildings totaling 540,408 square feet. Building 100 will be 113,536 square feet, and Building 200 will be 426,872 square feet.

To be named Alliance 985 Business Park, Alliance will break ground on the project in the first quarter of 2025 and is slated to deliver in early 2026. Alliance 985 Business Park is designed to meet the increasing demand for industrial space, featuring clear heights of 32 and 40 feet and ample auto and trailer parking.

With immediate access to I-985 and within 15 miles of I-85, it is well-connected to local, regional and national distribution channels. Tenants will benefit from proximity to key logistics hubs such as UPS and FedEx, while the Northeast Georgia Inland Port directly links to the Port of Savannah through Norfolk Southern.

The post Southwire Launches 1 MSF Georgia Distribution Hub appeared first on Commercial Property Executive.

Reich Brothers has expanded its Mid-Atlantic industrial portfolio with its first acquisition in the metro Washington, D.C., market. The 539,691-square-foot warehouse with cold storage capabilities in Landover, Md., is described as one of the largest infill distribution centers in the region.

Nuveen Real Estate was listed as the most recent owner of the property at 6304 Sheriff Road, according to CommercialEdge data. Nuveen had acquired it from Link Logistics in September 2019 as part of a 100-property portfolio transaction totaling 29 million square feet.

JLL Capital Markets and JLL Metro DC Industrial Leasing represented the buyer in the Landover deal.

A value-add industrial property near Washington, D.C.

Situated less than 2 miles from the DC line and minutes from the Capital Beltway, the 21.7-acre property also includes 4 acres of industrial outdoor storage space. Downtown Washington, D.C., is some 10 miles west.

Completed in 1963, the cross-dock facility features 15 docks, 24-foot maximum clear heights and 10,000 square feet of office space. The building also is one of the East Coast’s largest freezer/cooler assets with tri-temp capabilities, JLL noted.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

Bill Prutting, Craig Childs and Chris Dale from JLL’s Mid-Atlantic Industrial Capital Markets team were the sole advisors on the sale transaction. They partnered with John Dettleff, Dan Coats, Abbot Wallenborn and Sam Haas of JLL’s Metro DC Industrial Leasing team, which will lease the property on behalf of the new owner.

Reich plans to implement a multi-million dollar capital investment program. Improvements are slated to include installing a new roof, enhancing cold storage elements, upgrading the entrance and loading docks and completing interior and exterior painting.

More Reich Brothers moves

Reich Brothers, a 30-year-old firm focused on acquiring large-scale manufacturing, distribution and freezer/cold storage assets, has owned and operated more than 50 million square feet of industrial space across the U.S. The current deal expands its Mid-Atlantic portfolio to more than 2 million square feet, with additional purchases planned.

In another recent transaction, the firm acquired an industrial complex at 100-200 Sea Ray Drive in Merritt Island, Fla., from AAEA Investments LLC, for $27.7 million. Arnott Industries is the sole tenant of the Brevard County property.

In November 2023, Reich Brothers purchased a 309,968-square-foot industrial facility in Toledo, Ohio, from Stellantis in a sale-leaseback transaction. It was the firm’s first acquisition in the Toledo market.

The post Reich Brothers Enters DC Industrial Market appeared first on Commercial Property Executive.

RAF Pacifica Group has completed Escondido Logistics Center, a two-building,147,054-square-foot industrial property in Escondido, Calif. Development costs rose to $60 million.

The San Diego Water Authority acquired one of the buildings upon completion, in a $38.8 million deal brokered by Colliers International. Cushman & Wakefield represented the seller in the transaction and is marketing the second property for lease.

RPG secured a $11.4 million construction loan from City National Bank in 2023, CommercialEdge data shows. The company acquired the development site in 2022 for $4.5 million from JRMC Real Estate, according to San Diego County public records.

READ ALSO: Top 5 Markets for Industrial Deliveries

The 7-acre property is at 1903 and 1943 Citracado Parkway, within Escondido Research and Technology Center, a 22-acre business campus. It is near Interstate 15, which allows for easy access to San Diego and Los Angeles. Montgomery-Gibbs Executive Airport is 25 miles away while San Diego International Airport is within 33 miles.

Escondido Logistics Center’s two buildings measure 88,000 and 58,000 square feet. Features include 28-foot clear heights, grade-level loading doors, dock doors and heavy power. RPG envisioned the property to accommodate manufacturing and distribution users.

Executive Vice Chairman Aric Stark and Senior Director Drew Dodds with Cushman & Wakefield are marketing the remaining 58,000-square-foot facility for lease.

Some 5.5 million square feet planned for San Diego

A few large deliveries took shape in metro toward the end of last year. Among these was Chestnut Properties’ 380,000-square-foot Gillespie Field iPark in El Cajon, Calif. In January 2024, the developer secured $91 million in construction funds for the project, which was already 40 percent preleased to GKN Aerospace.

During the last quarter of 2024, the San Diego industrial market had 2.8 million square feet of space under construction, with an additional 5.5 million square feet in the planning and permitting stages, according to a Cushman & Wakefield report. A significant share of this upcoming space is in the Otay Mesa submarket.

The post RAF Pacifica Group Delivers $60M San Diego Project appeared first on Commercial Property Executive.

A joint venture of GTIS Partners and Hopewell Development has sold Champions Circle Business Park, a 361,040-square-foot industrial campus in Fort Worth, Texas. Stonelake Capital Partners acquired the asset, according to CommercialEdge data.

The duo kicked off the industrial park’s development in 2021, benefitting from a $23.4 million construction loan, the same source shows. Champions Circle was completed a year later.

The park consists of three buildings—two 82,240-square-foot facilities and a third measuring 196,560 square feet. The shallow-bay light industrial structures feature 32-foot clear heights, 190-foot truck courts and building depths ranging from 160 to 210 feet.

READ ALSO: 5 Promising Opportunities in an Uncertain Market

Located on 21 acres at 15860 Championship Parkway, the industrial campus is less than 1 mile from Highway 114 and Interstate 35W. The Dallas Fort Worth Airport operates roughly 19 miles southeast.

Champions Circle Business Park is part of the 27,000-acre Alliance Texas master-planned development, which encompasses 60 million square feet of built space including office, industrial, retail and residential.

The tenant roster includes Optimas, an industrial fastener distributor and manufacturer, and Elliott Electric Supply, as well as Lab Supply, a provider of products for research facilities.

Dallas investment barrels through despite national slump

Investors slammed on the brakes on industrial deals throughout 2024. Last year, the sector made up just 12 percent of sales, down from 21 percent in 2023, DLA Piper’s annual survey shows. However, Dallas industrial investment kept a solid pace throughout 2024, and the market’s momentum lingered well into the new year.

A two-building, light industrial campus traded last month in the Metroplex. Rosewood Property Co. purchased the 200,765-square-foot asset from Provident Realty Advisors. The Plano, Texas, property was 71.1 percent leased at closing.

In January, Alterra IOS expanded its industrial outdoor storage footprint with four more assets. Spanning 35 acres, the collection brought the company’s IOS portfolio to 10 properties in the market.

The post Hopewell and GTIS Sell Metroplex Industrial Asset appeared first on Commercial Property Executive.

Phoenix Investors has acquired three industrial properties totaling approximately 3.1 million square feet.

The company bought a nine-building, 750,000-square-foot campus in Milwaukee from Regal Rexnord. The asset changed hands for $9 million, according to Milwaukee Business Journal. The other two properties were sold by a subsidiary of Stellantis and are in Milwaukee and Marysville, Mich.

Cushman & Wakefield brokered the Stellantis transaction, while First Financial Bank provided acquisition financing for the Regal Rexnord sale. These purchases brought Phoenix Investors’ national portfolio to more than 80 million square feet.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The 56-acre Rexnord property is at 4701 W. Greenfield Ave. Its buildings were completed between 1920 and 1973. Features include clear heights ranging from 12 to 47 feet, crane bays and heavy power infrastructure. Floorplans allow for a minimum divisible configuration of 12,741 square feet. The asset was fully vacant at the time of sale.

The two Stellantis assets are at 3280 S. Clement Ave. in Milwaukee and 840 Huron Blvd. in Marysville. The first encompasses 1.1 million square feet, has clear heights up to 21 feet, 40 dock doors and six drive-in doors. The three-building Marysville property measures 1.2 million square feet, clear heights up to 36 feet, 64 dock and 13 grade doors, along with 9,800 square feet of office space. Both properties also have access to rail and are used by Stellantis’ Mopar division.

The Milwaukee properties are within 10 miles of each other. They are close to interstates 94 and 41 and within 13 miles of Milwaukee Mitchell International Airport. The 840 Huron Blvd. asset is close to St. Clair County International Airport and provides easy access to interstates 94 and 69.

Executive Director Tony Avendt and Senior Director Jeff Hoffman with Cushman & Wakefield brokered the Stellantis deal. First Financial Bank Senior Vice President & Regional Manager Jeff Cartwright provided the senior financing for the former Regal Rexnord campus acquisition.

Big purchases in the Midwest

Another large industrial acquisition in the Midwest region closed last month. SL Industrial Partners picked up a 17-building portfolio in Chicago’s suburbs. The assets were 92 percent leased at the time of closing.

In November, Industrial Realty Group purchased a 965,134-square-foot campus in the Minneapolis-St. Paul metro. The company plans to redevelop the property.

A month earlier, InSite Real Estate sold a 1.1 million-square-foot property in Monroe, Mich., for $139.5 million. The asset was fully leased to Ford Motor Co.

The post Phoenix Investors Buys 3.1 MSF of Industrial Assets appeared first on Commercial Property Executive.

Eight properties in the portfolio are Class A industrial assets with an average vintage of 2014. A 46,182-square-foot office property in Irvine, Calif., was also included in the financing.

The JLL debt advisory team working on behalf of the borrower was led by Capital Markets President Kevin MacKenzie, Senior Managing Director & Industrial Co-Lead Brian Torp and Director Spencer Seibring.

“There was strong interest from the insurance companies for this well-diversified, Class A, stabilized portfolio,” Torp told Commercial Property Executive.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The facilities feature clear heights ranging from 28 to 36 feet and ample dock doors. They are fully leased to 13 tenants representing various industries, including consumer goods, home improvement and third-party logistics.

Refinancing portfolios brings economies of scale

Bundling multiple buildings into a single loan portfolio finance has many advantages with few disadvantages, according to Ivan Kustic, vice president at MetroGroup Realty Finance.

“The obvious advantages for the lenders are economies of scale as larger building owners with substantial portfolios typically have institutional-quality assets that are well maintained,” Kustic said. “The borrower is well-capitalized and a dominant landlord in the market. A large amount of capital can be deployed in one transaction. The loan request is typically lower leverage.”

There are advantages for the borrower as well. According to Kustic, the lender usually allows the borrower to substitute assets in and out of the credit facility.

“The larger portfolio multi-asset loans generally receive more favorable pricing. Borrowers are dealing with one institution in originating the loan as well as ongoing servicing interactions,” Kustic explained.

He added that the difficulty in assembling multiple assets for a single credit facility is matching multiple portfolio assets to lenders’ preferred criteria. Capital sources have very specific preferences in their security, such as size, use, age, configuration and demographics. Not all buildings offered in portfolio finance often fit the lender’s lending criteria.

Bixby, PGIM expand portfolios

Two weeks ago, in the Orange County market, PGIM Real Estate worked to remain the sole owner of Bella Terra, a lifestyle center of more than 1 million square feet in Huntington Beach, Calif.

DJM Capital Partners and PGIM purchased the asset in 2015 for $100 million, and DJM subsequently sold its ownership interest.

In October, Bixby Capital Management purchased a Class A industrial portfolio from Huntington Industrial Partners. The Mesquite, Texas, three-building collection totals 533,632 square feet.

The post Bixby Capital Lands $142M Loan for 2 MSF Portfolio appeared first on Commercial Property Executive.

Heitman has closed its Real Estate Debt Partners III fund with $806 million in capital commitments, surpassing the $600 million target. The investment vehicle will finance projects in both traditional and alternative property sectors.

The company will pursue loan investments ranging from bridge to construction and preferred equity, as well as mezzanine, PERE Credit reported. HDP III is slated to target returns stemming from core-plus to value-add strategies.

A meaningful portion of the fund’s capital will be allocated toward alternative sectors, the same source revealed. One such sector is health-care real estate, where Heitman already teamed up with Catalyst Healthcare Real Estate last July to deploy $300 million in the development of medical office properties across the nation.

READ ALSO: What Defines the Best CRE Investments Today?

Following in the footsteps of its predecessor, HDP III may also target U.S. residential developments, particularly student housing, PERE reported.

Heitman recently made moves in more traditional real estate, purchasing a 300,000-square-foot warehouse in Norfolk, Va. This investment, marking its first U.S. industrial acquisition, aligned with the company’s core-plus strategy.

Heitman’s debt platform had $5.5 billion in assets under management as of December. The firm manages $48 billion in assets globally.

Private lenders step up

As traditional lenders are veering away from providing capital to sectors where they had otherwise been involved for many years, a new opportunity emerges for private entities to fill the void.

The prospect of a recovering market boosts confidence among debt and equity providers. While other sources dried up, private lenders have maintained their involvement and some even expanded their offerings.

One such example is ACORE Capital LP’s Credit Partners II fund. With equity commitments of roughly $1.4 billion, the investment vehicle marked the largest ACORE credit fund focused on originating and managing transitional debt across the U.S.

The post Heitman Raises $800M for Latest Debt Fund appeared first on Commercial Property Executive.

The developments include the 181,993-square-foot Building 7, the 249,413-square-foot Building 11 and the 194,195-square-foot Building 12. Building 7 is slated for completion in the fourth quarter, while the other two will be complete by the first quarter of 2026.

Building 7 will feature a 32-foot clear height, as will Building 12. Building 11 will be taller, at 36-foot clear height. Building 7 will also include 39 dock doors, while Building 11 will have 54 dock doors and Building 12 will have 48 dock doors.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

Horizon 16 is on Jimmy Deloach Parkway and Interstate 16, a site that is one of the last developable parcels that can accommodate bulk distribution within 15 miles of the Port of Savannah, according to the developers.

Phase Two is a follow-up of the completed Phase One, which includes 1.1 million square feet across three facilities and is 74 percent leased to such tenants as Ferguson and Harbor Freight. 

Evans serves as the project’s general contractor, while architect Atlas designed it. CBRE Senior Vice President William Lattimore is handling leasing at the property.

Trinity and Barings have formed joint venture partnerships to develop industrial properties before. The companies recently developed 85 Exchange, a 1.3 million-square-foot industrial park outside of Charlotte, N.C., which includes Amazon as a tenant.

Savannah industrial market in growth mode

Savannah is currently an industrial boom town, with 24 industrial projects underway as of the end of 2024’s last quarter, according to a Colliers report, totaling some 9.9 million square feet. Of that total, 69 percent (6.8 million square feet) were spec developments, while 31 percent (3 million square feet) were build-to-suit facilities. Completions totaled 15.8 million square feet.

Meanwhile, net industrial absorption was 693,000 square feet—excluding Hyundai and related suppliers—bringing the total for 2024 to 8.8 million square feet. The vacancy rate witnessed a minor uptick to 9.29 percent from the 9.25 percent recorded by the end of the third quarter.

And Savannah is preparing for more industrial growth as its infrastructure expands. The Port of Savannah is already the fourth-largest port by TEUs in the U.S., according to the Bureau of Transportation Statistics, and 14th in total tonnage. The U.S. Army Corps of Engineers continues its Savannah Harbor Expansion Project to deepen the entire harbor from its current 42-foot depth to 47 feet, which will add to its capacity.

The post Trinity Capital, Barings Expand Savannah Industrial Campus appeared first on Commercial Property Executive.

A joint venture between Trammell Crow Co. and Clarion Partners has broken ground on the third and final phase of Weiser Business Park in Cypress, Texas. Upon completion in October 2025, this stage will add 628,012 square feet of speculative industrial space in two buildings, expanding the campus to 1.7 million square feet.

Cadence Bank provided construction financing, which according to CommercialEdge clocked in at $32.5 million. Cadence also issued a note of $31.9 million for the previous phase, which debuted in 2023 and added 521,600 square feet to the industrial park.

Seeberger Architecture provided design services for phase three, which comprises two facilities. A&F General Contractors is also part of the development team. The same crew worked on Weiser Business Park’s second phase.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The duo will feature a cross-dock configuration and 36-foot clear heights, as well as a combined total of 136 dock doors and eight ramp doors. The two buildings will pursue LEED certification upon completion.

The 130-acre Weiser Business Park rose on the site of the former Weiser Airpark, which opened in the mid-1940s and shuttered its operations in 2019. Carrying the addresses 14311 and 14281 Fallbrook Drive, the last two infill construction sites are 24 miles northwest of downtown Houston.

Buildings one through four are 93 percent leased. The tenant roster includes Western Post, a warehousing operator based in China, and Pratt Industries, a packaging manufacturing company, as well as R.S. Hughes, a distributor of industrial supplies, among others.

Metro Houston’s industrial starts outpace deliveries

Greater Houston’s industrial pipeline encompassed 11.5 million square feet of space underway in December, according to a Cushman & Wakefield report. Speculative industrial developments accounted for 95 percent of the total under-construction space.

During 2024’s last quarter, construction starts clocked in at 4.0 million square feet, outpacing industrial deliveries—which landed at 2.0 million square feet—for the first time since 2022’s fourth quarter, the report shows.

The market’s vacancy rate stood at 5.5 percent at the end of 2024, a 120-basis point decline compared to 2023, the same source reveals. This drop was due to less supply hitting the market last year. Just 16.4 million square feet of industrial space debuted in 2024, as opposed to 35 million square feet in 2023.

As deliveries dwindled and vacancy tempered, new projects may take root in select submarkets this year, Cushman & Wakefield predicts. One industrial development that broke ground earlier this year was the 463,000-square-foot Patriot Business Park in Houston’s Northern submarket. Investment & Development Ventures and Standard Real Estate teamed up for the campus, which is slated for delivery in 2025’s third quarter.

The post Trammell Crow, Clarion Kick Off 628 KSF Industrial Project appeared first on Commercial Property Executive.

To have your commercial real estate transaction featured, submit details to Agota Felhazi at agota.felhazi@cpe-mhn.com.

Read the February 2025 issue of CPE.

The post Transactions: February 2025 appeared first on Commercial Property Executive.

In the Viewpoint 2025 survey, IRR shared viewpoints from its nearly 600 valuation advisors across the U.S. and the Caribbean.

“In this market, fundamental value isn’t about speculation but real cash flow, strong locations and realistic tenant demand,” Anthony Graziano, CEO of IRR, told Commercial Property Executive.

Investors need to rely less on the cost of money and more on effective management to maximize operations by focusing on sustainable rent levels and assets with lasting economic function, Graziano advised.

“Long-term value lies in markets with strong job growth, economic drivers and favorable migration trends,” he said. “Fundamental value is not a definition—it is a recognition that investors need to get back to basics and study fundamental drivers that create long-term value.”

In the meantime, private investors have shifted capital allocations to alternatives such as senior housing, self storage, build-to-rent single-family and data centers.

Create a lasting impact

Graziano said the best real estate investments go beyond returns—they create lasting impact.

“Today’s most successful projects are mixed-use developments that integrate housing, retail and community spaces, especially in high-growth metros,” he said. “Developers are embracing adaptive reuse, transforming vacant malls, offices and hotels into vibrant mixed-income housing and health-care facilities, addressing market demand and community needs.”

Graziano pointed out that projects such as Nashville Yards and Richmond’s Diamond District showcase this transformation, seamlessly blending commercial space with housing, entertainment and public gathering areas.

READ ALSO: Which Asset Classes Stole the Spotlight in 2024?

Additionally, four developers are proposing a redevelopment of Boca Raton City Center in Boca Raton, Fla., incorporating these principles.

“These developments demonstrate that reimagining underutilized spaces isn’t just good urban planning; it’s a blueprint for sustainable, community-driven growth,” he added.

Trump policy points to ‘America’ first

As an over-arching theme, national economic policy action can have impacts (intended and unintended) on the economy, which nearly always affects the direction of real estate values, Graziano said.

“President Trump’s general thesis has always been clear: America First, which will generally be good for real estate and real estate investment in growth. He’s an expansionary president who focuses on investing in America’s economic strength, and disinvesting in activities that do not tie to American growth.”

The challenge on the real estate front will be balancing the America First growth focus with potential dislocations associated with abandoning prior administration policy, Graziano warned. Some examples include stated reductions in the federal workforce through DOGE, cuts to major programs that could have industry-specific impacts and significant divestiture of federal assets (land, buildings, leases, etc.).

Office determinant on federal workers

For the first time in years, Graziano said he is seeing a real policy push that could bring federal workers back to the office.

READ ALSO: Trump’s Gift to the Office Market

“If private employers follow the lead, it could finally stabilize the sector, especially for well-located Class A buildings,” he said. “Not every office building will make a comeback. Older Class B and C buildings continue to face an uphill battle, and many must be repurposed to stay viable. This is especially true of aging government buildings.”

Industrial shifts to domestic

Graziano said industrial remains the strongest asset class, but after years of rapid expansion, it’s shifting into a more measured growth phase.

He added there’s been a shift toward domestic production following the post-Covid reshoring trends.

“As President Trump implements the threatened tariffs and provides reshoring incentives, the industrial sector could see another wave of demand—especially in border states and major logistics hubs,” he said.

Labor shortages and high development costs remain real barriers, Graziano cautioned. Even with strong demand, constructing the next generation of industrial facilities won’t be easy or cheap, he anticipates. Port cities could see a fall-off in container throughput as imports directly correlate with port industrial demand.

Retail relies on confidence

Retail’s success is tied to consumer confidence.

“If President Trump’s tax policies put more money in people’s pockets, we could see a boost in spending—especially in restaurants, entertainment and service-based retail,” according to Graziano. “But there’s a flip side: if trade policies make imports more expensive, big-box stores and fast fashion retailers could take a hit if there is a consumer backlash on pricing.”

Graziano anticipates that this will also appear in the inflation stats, which could impact the Fed funds’ rate policy. “Expect strong performance from grocery-anchored centers and necessity-driven retail, which tend to weather economic volatility better than most.”

Multifamily remains steady

Multifamily has been one of the steadiest asset classes, but policy shifts could shake things up, according to Graziano.

“Multifamily is stabilizing, though affordability concerns are keeping investors cautious,” he said. “Some pockets of multifamily distress have been building in markets with high inventory deliveries.”

If President Trump extends tax cuts or eases regulations, more investment could flow into new development, Graziano anticipated.

But immigration policies and potential rent controls in some states could impact demand and operating costs. According to Graziano, housing is also a significant component of inflation statistics, so there will be competing interests to keep rent and housing growth strong, but not too strong, which will undermine inflation protections. “Investors must stay flexible and focus on markets with strong job growth and steady population gains to mitigate risks,” Graziano cautioned.

The post What Defines the Best CRE Investments Today? appeared first on Commercial Property Executive.

This first phase consists of two speculative Class A warehouses totaling 1,556,350 square feet on 215 acres. Building 1 measures 538,450 square feet, while Building 2 is 1,017,900 square feet.

The cross-dock facilities feature 40-foot clear heights, 185-foot concrete truck courts, abundant trailer and car parking, more than 290 dock door positions and four drive-in ramps. Each building features a roofing system that can accommodate future solar panels, ample electrical service, an ESFR fire protection system and a 3,900-square-foot, air-conditioned office area.

A Trammell Crow spokesperson confirmed to Commercial Property Executive that there is no leasing at the property yet.

READ ALSO: Atlanta’s Industrial Sector Among the Busiest in 2024

Designing of Jackson 85 North’s second phase is underway and includes two additional speculative warehouses measuring 210,080 and 524,160 square feet. Phase Two could also accommodate a build-to-suit warehouse of up to 750,000 square feet.

When the project was first announced in January 2023, the plans for the second phase featured a single building of about 700,000 square feet.

Jackson 85 North is about 60 miles northeast of Atlanta, with easy access to Interstate 85 and the rest of metro Atlanta.

Marketing and leasing for the entire project are being led by Wilson Hull & Neal Real Estate.

Ports, inland and not

Metro Atlanta’s northeast submarket will be benefitting from a major development by the Georgia Ports Authority, according to a new report from CBRE. The 104-acre Northeast Georgia Inland Port is expected to break ground within the next year.

The inland port will feature 9,000 feet of working track initially, a quantity that will eventually double, as well as a start-up capacity of 80,000 container lifts, all to be served by Norfolk Southern. Strategically, the facility is intended to expand the Port of Savannah’s reach into Northeast Georgia, in part from the fact that it’s less than 20 miles from I-85.

In late October, Trammell Crow Co. and MetLife Investment Management completed a quite different industrial project at the other end of the U.S., a two-story industrial property totaling about 702,000 square feet. Seattle Metro Logistics is about 3 miles from the Port of Seattle.

The post Trammell Crow, CBRE IM Deliver 1st Phase of Atlanta-Area Project appeared first on Commercial Property Executive.

Lincoln Property Co. has completed Maverick Distribution, a 435,680-square-foot industrial facility in Houston. The Class A property was developed in a joint venture with HIMCO and is currently available for lease.

Texas Exchange Bank provided a $28.5 million construction loan originated in September 2023, according to Harris County public records. The same source shows that Lincoln Property Co. purchased the development site in 2022, from The National Realty Group Inc. The development team included Powers Brown as architect of record and EE Reed as general contractor.

Maverick Distribution is at 18239 Aldine Westfield Road, covering a 26-acre lot. The property allows easy access to interstates 45 and 69, as well as to Beltway 8. George Bush Intercontinental Airport is within 4 miles from the property, downtown Houston is within 18 miles and William P. Hobby Airport is within 30 miles. Notable corporate neighbors in the area include Amazon, Coca Cola, Sysco and Farouk Systems, among others.

The property includes 40-foot clear heights, being the first asset with such ceiling capacity in the North Houston area. The building was designed to meet highly technical needs of advanced logistics companies. It also includes cross-dock configuration with 102 overhead doors, ample column spacing, ESFR sprinkler systems and 70-foot speed bays. Additionally, Maverick Distribution features ample parking spaces, with 289 vehicle parking spots and 134 trailer parking spots.

Lincoln Property Co.’s Executive Vice President Kevin Wyatt, Leasing Representative Robert Willard and Associate SuAnna Sanchez are leading leasing efforts for Maverick Distribution. The property has spaces that are divisible to as much as 100,000 square feet or can be used by a single tenant.

Houston’s industrial pipeline

As of December last year, Houston’s pipeline had 12.4 million square feet underway, a recent CommercialEdge report shows. The metro ranked third among top U.S. markets, outpaced only by Phoenix (22.4 million square feet) and Dallas-Fort Worth (18.9 million square feet).

Recent developments include GreensPORT Logistics Park, a two-building, 535,478-square-foot project that broke ground in October. Developed by Jackson-Shaw, the complex is expected to come online in the third quarter of this year.

In recent months, Hines also broke ground on Grainger’s Houston Texas Distribution Center, a 1.2 million-square-foot project in Hockley, Texas. The property will become one of Grainger’s largest facilities, hosting about 400 employees in the first year.

The post Lincoln Property JV Delivers Houston Facility appeared first on Commercial Property Executive.

Stonelake Capital Partners has purchased a 123,140-square-foot industrial building in Charlotte, N.C. Albany, N.Y.-based Steins Fiber sold the property for $13.5 million, Mecklenburg County public records show.

Avison Young arranged the transaction on behalf of the buyer, while Piedmont Properties represented the seller.

The deal marks Stonelake Capital Partners’ second off-market industrial purchase in the metro. The company entered the Charlotte industrial market in late 2024, with the acquisition of a fully occupied, 402,390-square-foot facility. At the time, Stonelake Capital Partners paid $51 million for the property, which is situated within the Concord Airport Business Park. That transaction was also arranged by Avison Young.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The property is at 6000 Old Concord Road and it’s fully leased to Foundation Building Materials and Dixie Plywood & Lumber Co., CommercialEdge shows. The asset allows easy access to interstates 485, 85 and 277. Charlotte Douglas International Airport is within 13 miles, while Concord, N.C., is 22 miles away.

The building features 22-foot clear heights, 13 dock high doors, one grade level door, LED lights, skylights, a fenced truck court and potential for as much as 2 acres of outdoor storage space. Avison Young’s Principals Chris Skibinski, Henry Lobb, Vice president Abby Rights and Associate Broker Jewell Gentry worked on behalf of the buyer. Partner Will Jenkins, Director of Investments Marc Hedrick and Investment Associate Jack Harvey with Stonelake Capital Partners also assisted. The seller was represented by Piedmont Properties’ President Scott Hensley.

Strong industrial activity

Industrial properties traded at one of the lowest average sale prices in the South region, of $79 per square foot, a recent CommercialEdge report shows. Charlotte’s industrial sales volume stood at $781 million, outperforming Baltimore ($486 million) and Memphis ($362 million). The metro maintained its position as one of the South’s tightest markets, with an industrial vacancy rate of 5.4 percent, below the 7.5 percent national average.

In December, INDUS Realty Trust acquired a majority stake in a 21-building industrial portfolio with assets in Charlotte and Charleston, N.C. Dubbed The Carolinas Portfolio, the 4.3 million-square-foot collection is valued at $575 million. Earlier last year, LM Real Estate Partners paid $97 million for an approximately 1.4 million-square-foot industrial property in the area, in a deal brokered by Avison Young.

The post Stonelake Capital Picks Up Charlotte Facility appeared first on Commercial Property Executive.

Ben E. Keith Foods has started construction on a 707,000-square-foot distribution center in Alachua, Fla. The project is expected to reach completion by fall 2026.

The warehouse is taking shape on a 148-acre lot on Technology Avenue within Interstate 10 Industrial Park, according to Milton Post. The firm acquired the site in June for $13.5 million, Alachua County records show.

This will be Ben E. Keith Foods’ second Florida location. The first one is a 83,500-square-foot warehouse in Gainesville that became one of the company’s holdings after it acquired Florida Food Services Inc. in 2022.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The firm has 10 divisions, shipping to 20 U.S. states. The upcoming facility will house its Florida Division headquarters and help expand its reach in the Southeast region.

When complete, the property will have 105 dock doors and parking for 120 tractor trailers. It will feature advanced logistics systems and 24/7 intake and outtake operations for better serving customers.

Industrial development in Greater Jacksonville

Industrial projects under construction in Greater Jacksonville, Fla., totaled 6.9 million square feet in the last quarter of 2024, a recent Colliers report shows. However, the pipeline is expected to shrink as construction starts were less often when compared to the last seven years. The majority of underway developments were warehouse or distribution facilities, while cold storage projects amounted to nearly 900,000 square feet.

In August, VanTrust Real Estate received approvals for a 547,000-square-foot warehouse within Imeson Park South in North Jacksonville. The speculative facility will be the developer’s fifth project to be constructed at the 3 million-square-foot master-planned campus.

The post Ben E. Keith Expands in Florida With 707 KSF Facility appeared first on Commercial Property Executive.

In preparing the report, the law firm analyzed more than 950 purchase and sale agreements and over 500 property management agreements—data from the volume of transactions that DLA Piper handles in major U.S. markets. Overall, the company noted, deal volume in acquisitions and dispositions, including joint ventures, was robust in 2024, despite the still-elevated cost of capital.

Investors were particularly interested in downtown and metro areas in major markets such as Washington, D.C., New York City and Chicago. Among the states, there was “significant transaction volume” in urban and suburban areas across California and Texas, DLA Piper found.

Among non-residential property types, industrial still represented the highest percentage of 2024 investment deals in the data set analyzed in the report, but just barely at 12 percent, down sharply from 21 percent in 2023 and 20 percent in 2022. Office investment ticked up from 8 percent in 2023 to 11 percent in 2024, showing that the sector isn’t completely kaput.

Investment in retail assets was stable at 9 percent of the total in 2024, the same as the year before, and hotels dropped from 4 percent to 1 percent over the same period, the report found.

The steepest year-over-year rise in investment, however, was in data centers. As recently as 2020 and ’21, none of DLA Piper clients were acquiring data centers, and only 1 percent were in 2022. By 2023, 4 percent of the deals involved data centers, and by 2024 the volume had swelled to 9 percent.

READ ALSO: CBRE Survey Indicates Optimism by Investors

Despite these movements in investor interest, the fact of the matter is that residential properties totaled the most: 40 percent of all the 2024 transactions studied by the report, a figure that hasn’t changed much since the pandemic (though only 15 percent of investors acquired multifamily in 2019).

Financial contingencies up slightly

The report also covered financial contingencies among the universe of transactions handled by the company, finding a slight increase in the total percentage of transactions in which financing contingencies were present, up from 10.71 percent in 2023 to 11.11 percent in 2024.

“We saw a more noticeable shift between contingencies for loan assumptions versus contingencies for new loans,” the report explained.

Of the 11.11 percent of transactions where a financing contingency was part of the deal, the percentage of loan assumption contingencies rose from 7.14 to 8.64 percent between 2023 and ’24, while the percentage of new financing contingencies dropped from 3.57 percent to 2.47 percent over the same period.

The report chalked up those movements to the fact that, while interest rates dropped somewhat in 2024, in many cases a buyer can still obtain a better rate by assuming existing financing, which tends to date from the period before the anti-inflation hike in rates.

The report also found that the most common survival period for representations and warranties continued to be 270 days, a period common to 46 percent of the transactions DLA Piper handled in 2024. The number-two most popular survival period was 180 days, which had a 28 percent frequency.

Penalties for breach of representations and warranties didn’t change much between 2023 and ’24, the report noted, especially those deals with purchase prices below $125 million. Larger deals saw more movement to increase average liability caps, especially those of more than $300 million.

Property management trends

Property management fees continued to be toward the middle of the range, the DLA Piper report found, with most coming in between 2 percent and 5 percent of rent, with an increase in fixed fee arrangements.

The clustering of property management fees in the middle range was especially noticeable in the residential sector, where (for example) about two-thirds of fees for apartments came in between 3 percent and 4 percent, with a similar range for student housing and manufactured housing. Senior housing fees were higher, however, three-quarters of which were above 5 percent.

Among non-residential property types, fees were more widely spread. For industrial, 35.9 percent of managers charged 5 percent or more, while the rest charged anything from less than 1 percent to as much as 5 percent. Office and data centers likewise were scattered across the range of fees.

Construction management fees across property types didn’t change much in 2024, the report noted. Most residential management fees are higher than 5 percent, with senior housing an exception at between 2 percent and 3 percent. For industrial, 41.8 percent of construction fees totaled 5 percent or more, but nearly a third of such fees came in between 2 percent and 3 percent.

The post Which Asset Classes Stole the Spotlight in 2024? appeared first on Commercial Property Executive.

The Trepp CMBS Special Servicing Rate climbed higher in December 2024, increasing 36 basis points to reach 9.89 percent. Throughout 2024, the rate increased about 311 basis points. The overall special servicing rate has not breached 10 percent since November 2020.

The mixed-use sector experienced the highest month-over-month increase in the special servicing rate, soaring 182 basis points to 11.72 percent in December, surpassing 11 percent for the first time since 2013. The multifamily sector also saw a sizable increase in the special servicing rate in December, increasing 136 basis points to 8.72 percent.

The office special servicing rate rose 15 basis points to 14.78 percent from 14.63 percent in November. The last time the office rate was above 14 percent was for three months in 2012, and it has not breached 15 percent since at least the year 2000. The retail rate declined 12 basis points to 11.67 percent, after five consecutive months of increases. Finally, the lodging rate rose by 14 basis points from 8.15 percent to 8.29 percent in December.

—Posted on January 31, 2024

The Trepp CMBS Special Servicing Rate climbed 39 basis points to reach 9.53 percent in November. The rate has increased about 275 basis points so far in 2024, with November seeing the second-largest monthly jump in the overall rate in 2024, following the 80-basis-point increase in April.

About $3.7 billion in outstanding loans transferred to special servicing in November, which is the largest amount that has transferred in a given month in the last six months. The office sector claimed the largest proportion at 35 percent of the newly special serviced loan amount, and the rest of the newly special serviced loan balance was evenly distributed across the multifamily, mixed-use and retail sectors.

The largest loan that transferred to special servicing in November was also the loan that drove the substantial uptick in the mixed-use rate. The $742.8 million 1515 Broadway loan transferred to special servicing due to imminent balloon payment default ahead of its March 2025 maturity date.

—Posted on December 27, 2024

The Trepp CMBS Special Servicing Rate increased another 34 basis points to reach 9.14 percent in October 2024.

In the last six months, the rate has increased just over 100 basis points, with the October figurereflecting the tenth consecutive monthly increase.

Among the major property types, the office sector saw the highest month-over-month increase in the special servicing rate, surging 136 basis points to 13.94 percent. Compared to October 2023, the office rate has climbed 539 basis points. The last time the office special servicing rate breached 13 percent was in November 2011, after which the rate stayed above 13 percent until July 2012.

The lodging rate has continued to climb, reaching 8.32 percent in October; the last time it was above 8 percent was in May 2022 when the rate was coming down from Covid highs. The multifamily and retail property types also experienced upticks in October, rising 14 basis points to 6.21 percent and 14 basis points to 11.37 percent, respectively.

—Posted on November 26, 2024

The Trepp CMBS Special Servicing Rate rose substantially in September, jumping up 33 basis points to reach 8.79 percent. This was the ninth consecutive monthly increase, and the second-largest uptick of 2024.

Property type specifics revealed some interesting statistics. Distress was consistent throughout, with the respective special servicing rates of the five major property types all increasing. These increases varied in degree, but four of the five property types increased by at least 30 basis points. Driving the overall increase in September was the office sector, which surged 67 basis points to 12.58 percent. The office rate is now up more than 200 basis points in the past four months alone, with distress continuing to mount. The multifamily rate rose 36 basis points to 6.07 percent, surpassing the 6 percent mark for the first time in nearly nine years. Furthermore, the retail rate reached a near two-year high of 11.22 percent and the lodging rate hit a two-year high of 7.84 percent.

—Posted on October 25, 2024

The Trepp CMBS Special Servicing Rate took another jump in August, climbing 16 basis points to 8.46 percent. The rate has still sustained an increase during every month of 2024, and reached another three-year record high in August.

Parsing it out by property type, three experienced substantial upticks last month, each by at least 60 basis points. The multifamily rate rose 60 basis points to 5.71 percent, setting a near nine-year high. The last time the multifamily rate was higher was in December 2015. Furthermore, both the mixed-use rate and office rate increased 66 basis points each in August. The mixed-use rate now sits at 9.59 percent, the highest it has climbed since May 2013. The office rate rose to 11.91 percent, the highest it has reached since April 2013. Both sectors have risen significantly in the past year. Since August 2023, the mixed-use rate has increased more than 265 basis points, and the office rate has pushed higher by more than 415 basis points.

—Posted on September 27, 2024

The Trepp CMBS Special Servicing Rate pushed higher in July, increasing 7 basis points to reach 8.30 percent. The rate began 2024 at 6.95 percent and has increased every month since. It currently sits at a 3-year-high, is more than 180 basis points higher than the July 2023 rate of 6.62 percent and clears the July 2022 rate of 4.80 percent by 350 basis points.

Into property type specifics, most experienced minimal change in July, with a few only up or down by around 5 basis points. That said, two property types did change by about 40 basis points each, with one of them driving the uptick in the overall rate. The office special servicing rate rose 46 basis points in July to reach 11.25 percent. The last time this rate eclipsed 11.00 percent was back in August of 2013. Similar to the overall rate, office special servicing has largely been on the rise in 2024, and currently sits 150 basis points higher than its January level of 9.74 percent. After reaching an 11-year high last month, the mixed-use rate pulled back 40 basis points, falling back under 9.00 percent to 8.93 percent.

—Posted on August 30, 2024

The Trepp CMBS Special Servicing Rate ticked up slightly in June, rising 2 basis points to 8.23 percent. Despite this month’s increase being minimal, the rate itself remains at a very elevated level. Prior to the Covid-19 pandemic, the last time the rate eclipsed this month’s 8.23 percent was back in January 2014. With June’s modest uptick, this now marks the sixth consecutive monthly incline for the special servicing rate.

Parsing it out, there were a few property types that experienced more than modest change. Mixed-use special servicing rose most, up 40 basis points in June to hit 9.34 percent. This is the first time the mixed-use rate has eclipsed 9.00 percent since July 2013. The office rate also rose in June, increasing 27 basis points to 10.79 percent after its first decline of the year one month prior. Two property types that saw material improvement were lodging and multifamily, with drops of 54 basis points and 26 basis points, respectively. Though the multifamily rate experienced some relief, it remains relatively high, still sitting above 5.00 percent.

—Posted on July 31, 2024

The Trepp CMBS Special Servicing Rate pushed higher in May, up 10 basis points to 8.21 percent. Though this increase was modest compared to the 80 basis point leap a month prior, the overall rate is now at its highest level since June 2021. The rate has increased every month of 2024 and is now 1.43 percent higher than the 6.78 percent mark that it closed out in 2023.

Across individual property types, there were four that experienced changes of at least 30 basis points. Most notable was office, which finally experienced some relief, falling 32 basis points to 10.52 percent. This was office’s first drop of 2024, and a welcome sight considering that the office rate was on pace to eclipse 11 percent for the first time since 2013. Mixed-use saw the largest monthly increase in special servicing rate across the property types, up 69 basis points to 8.94 percent. The mixed-use rate has been consistently rising, up every month this year, and currently sitting at a near 11-year high.

—Posted on June 28, 2024

The Trepp CMBS Special Servicing Rate leaped in April, rising 80 basis points to reach 8.11 percent. This marks the largest monthly jump that the rate has experienced in nearly four years, with higher monthly upticks only reached during the COVID-19 pandemic in mid-2020. Furthermore, this is the first time that the rate has eclipsed the 8.00 percent mark since July 2021.

There were some big movers when analyzing by property type, with three up by at least 100 basis points. The office rate continued higher, pushing up to 10.84 percent. Retail was up 106 basis points in April after hardly moving a month prior. The biggest movers were by far ‘Other’ properties and multifamily, which increased a whopping 236 basis points and 269 basis points, respectively. The multifamily rate rose to 5.10 percent, up past the 5.00 percent mark for the first time since June 2017.

—Posted on May 30, 2024

The Trepp CMBS Special Servicing Rate jumped up to 7.31 percent in March, rising 17 basis points from the month before. This now marks the fifth straight month of inclines, over which time the rate has increased over 50 basis points.

Into property type specifics, there were mostly modest increases across the board, aside from lodging properties, which jumped 48 basis points from February. Retail’s two basis point decline was the only monthly decrease, though the industrial rate remained unchanged. Office sustained a 27-basis point increase to reach 10.30 percent, again topping the 10-year high it hit last month.

—Posted on April 26, 2024

The Trepp CMBS Special Servicing Report continued to rise in February, increasing nineteen basis points to reach 7.14 percent.This is the first time the overall rate has surpassed the 7 percent mark in about 2.5 years.

Breaking it down by property type, three notable sectors sustained material upticks to their rates, causing the overall rate to increase as it did. Office, mixed-use, and retail properties all experienced monthly inclines of at least twenty basis points. Together, these three sectors account for over 70 percent of the special servicing balance across all property types, and with respect to new transfers, they represented over 90 percent of February’s total. This month, the retail special servicing rate climbed by 44 basis points, while office and mixed-use both saw increases of 30 and 22 basis points, respectively. The office rate reached 10.04% in February, the first time since it has entered double-digits since 2013.

—Posted on March 29, 2024

In January, the Trepp CMBS Special Servicing Rate climbed 17 basis points, reaching 6.95 percent. After falling slightly in December, the rise this month has brought the rate to its highest level since October of 2021.

Performance across property types was a mixed bag – with many sustaining substantial increases or decreases to their respective rates. Three property types saw month-over-month changes that exceeded 80 basis points. After fluctuating only slightly for the closing months of 2023, the multifamily rate dropped 83 basis points to 2.34 percent in January 2024. The property type with the largest increase, and the main driver of the overall rate increase, was the office sector. The office special servicing rate rose 129
basis points to 9.74 percent this month, its highest month-over-month increase ever. The last time the office rate exceeded its current level was over a decade ago.

—Posted on February 28, 2024

The post 2024 Special Servicing Rates appeared first on Commercial Property Executive.

On the heels of outsized development that started in the pandemic and trailed off last year, industrial real estate investors and owners must now position themselves for the next stage of growth, challenged by high vacancies and growing tenant expectations.

Most of the issues that industrial owners and developers need to deal with today stem from a few years ago. From 2022 to 2023, more than 1.1 billion square feet of industrial space came online in the U.S. To put into perspective how enormous this volume was, the 330.7 million square feet completed in 2024 through November was still more than every year over the past 100 years prior to 2020, the latest CommercialEdge report shows.

This supply boom is what’s keeping vacancy rates elevated today. Overall, vacancy stood at 7.5 percent in November, way above the 4 to 2 percent range from three years ago, the same source shows.

On the plus side, tenants have much more high-quality product to choose from and this isn’t expected to change anytime soon due to the ongoing success of e-commerce, as well as reshoring and manufacturing.

Industrial sector’s tenant-favorable start to 2025

Decision-making around leasing is taking longer due to macroeconomic uncertainties, while maximizing logistics efficiency is resulting in footprint consolidations, leaving even more space empty as new supply outstrips net absorption. This focus on logistics efficiency will likely be a major trend for the industrial sector in 2025 and beyond. Businesses are prioritizing the efficiency of their transportation networks, access to infrastructure and proximity to consumers over securing lower rates in strategic locations, Executive Vice President & Head of Leasing and Customer Solutions at Link Logistics, Brandon Page, told Commercial Property Executive.

Nationwide, rents grew just 6.9 percent over a 12-month basis through November, the same CommercialEdge report shows, and industrial owners are expecting lower levels of construction this year to eventually lead to further rental stabilization, especially in the second half of 2025 as more space becomes absorbed. Page believes that users will continue to seek high-quality, well-located assets in infill locations as they continue to focus on optimizing their supply chains.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Several markets across the U.S. are poised for success, albeit for different reasons, given this context. Continued population growth across the Sun Belt, for example, will benefit markets like Dallas-Fort Worth, Atlanta, Nashville, Tenn., along with South Florida. On the other hand, regions like Chicago, Austin, Texas, and the Carolinas are bright spots that will benefit from the increase in domestic manufacturing.

With so much supply on the market, speculative development is expected to taper off. Speculative industrial development accounted for more than 80 percent of all deliveries through the first three quarters of 2023, with a similar trend occurring last year as well, according to Cushman & Wakefield Senior Director for Americas & Head of Logistics and Industrial Research Jason Price. The upward pressure on vacancy, coupled with the higher cost of capital, led to 2024 being the tail end of this outsized activity, as new starts fell sharply.

Despite all this, speculative development is not totally out of the cards for Prologis, the company’s Global Head of Research Melinda McLaughlin said. Nevertheless, activity will remain selective, targeting high-demand locations with minimal availabilities and competition. Companies that have significant land bank positions will be able to capitalize most on this, as economic conditions improve.

Reshoring, manufacturing growth will be a net positive

Flex industrial, manufacturing and R&D spaces are the most sought-after asset types by investors, according to surveys published by PwC and ULI in their Emerging Trends in Real Estate 2025 report. Although land availability and operational cost challenges led to a slower pace of onshoring, this will continue to be a main driver for industrial in 2025 and beyond.

In the Sun Belt and Midwest, clean energy manufacturing projects are expected to continue to grow. Proximity to key infrastructure—ports, rail and other major transportation hubs—along with access to essential materials, skilled workforces and suppliers are what attract manufacturers to these regions. The nature of production makes it more likely that these facilities are owner-occupied and thus removed from the competitive stack, noted McLaughlin. However, these create a spillover effect, spurring the growth of supplier networks that need to be nearby.

After location, the second-most important consideration in both leasing and development will be power availability, especially in the case of manufacturing, the PwC/ULI report highlighted. In this aspect, industrial real estate will increasingly compete with the data center sector, especially in regions like California, Nevada and Phoenix, where access to power is a growing barrier to entry.

Investments in automation, sustainability to ramp up

Electricity and water requirements are also tied to the growing popularity of automation, robotics and supply chain visualization technologies. Automation remains a significant capital improvement, but only a few groups are able to leverage it within their facilities. Over time, costs associated with this are expected to decrease, while operational efficiency will grow, making automation more accessible for warehouse users, according to Page.

Growing power requirements make it imperative for the sector to continue investing in renewables and sustainable building practices. At least 40 percent of industrial users are implementing net-zero goals, McLaughlin said.

Innovations like net-zero-ready facilities, rooftop solar and the electrification of logistics fleets—which in turn creates more demand for EV battery production—will play central roles going forward. The financial returns on sustainability, from direct investment and energy cost savings to indirect ones like customer retention and alignment with investor expectations, will far outweigh the short-term challenges.

As the industrial sector grows and evolves, developers and providers that can foster collaborative relationships with customers will stay ahead of the competition. The inevitable recovery in leasing activity will depend on smart growth, with sustainability and digitization as key differentiators in navigating global supply chain dynamics.

The post Industrial Real Estate’s Future Depends on Adaptability appeared first on Commercial Property Executive.

Goldman Sachs Alternatives and Dalfen Industrial are expanding their nearly five-year-old partnership. In an off-market transaction, the joint venture has acquired a 21-building, 2.1 million-square-foot last-mile logistics portfolio from Blackstone for $293 million.

The partnership first teamed up on industrial transactions in July 2020, with the purchase of 46 last-mile industrial facilities valued at nearly $500 million. With this latest acquisition, Dallas-based Dalfen and Goldman Sachs now own 94 buildings totaling 19 million square feet in major U.S. markets.

READ ALSO: Industrial Sector Settles After Supply Surge

The Blackstone portfolio adds assets in Dallas, Philadelphia, Pennsylvania’s Lehigh Valley, Cincinnati and Las Vegas. The buildings range from about 34,000 square feet to 260,000 square feet, with an average of about 125,000 square feet, and their vintage varies from 1995 to 2023 with an average of 2003.

The portfolio was 92 percent leased at closing to 68 tenants including Amazon, Red Bull and Packaging Corp. of America. Sean Dalfen, president & CEO of Dalfen Industrial, said in prepared remarks the collection was acquired at well below replacement cost.

Blackstone sold another last-mile industrial portfolio in recent months when Longpoint Partners acquired a 26-building, 1.4 million-square-foot portfolio of infill, last-mile facilities in South Florida for $331.3 million. The collection had properties in Miami-Date, Broward and Palm Beach counties and an average occupancy rate of 97 percent.

Last-mile focus

Dalfen, one of the largest privately held industrial real estate firms in the U.S., specializes in strategically located infill warehouses and distribution centers with a portfolio of more than 50 million square feet.

The partnership between Dalfen and Goldman Sachs has centered on last-mile properties. In December 2020, the joint venture purchased 10 last-mile properties located in Denver; West Palm Beach, Fla.; Charlotte, N.C.; San Antonio and Fort Worth, Texas, ending its first year with more than 8 million square feet of infill industrial acquisitions.

Sean Dalfen told Commercial Property Executive the firm will continue its investment strategy with a focus on last-mile properties in the nation’s top markets that are close to consumers and strategically located to meet the growing e-commerce and logistics demand.

“Last-mile properties are important as an investment because if you aren’t close to the customer, you simply won’t profit,” Dalfen said.

Asked about strategy, he mentioned, “We build our portfolio one asset at a time using a proprietary data-based last-mile scoring methodology and boots-on-the-ground experts to determine opportunities with optimal location and value.”

The post Goldman Sachs, Dalfen Pay $293M for Blackstone Industrial Portfolio appeared first on Commercial Property Executive.

The Trepp CMBS Delinquency Rate rose once more in December 2024, with the overall rate increasing 17 basis points to 6.57 percent.

The office delinquency rate rose 63 basis points in December to 11.01 percent, surpassing the 11 percent mark for the first time since Trepp began tracking delinquency rates in 2000. Prior to this, the highest the office delinquency rate had climbed was to 10.70 percent, reached in December 2012. There was north of $2 billion in office loans that became newly delinquent in December.

READ ALSO: What’s Ahead for CMBS in 2025?

The retail delinquency rate experienced the largest respective increase across property types, jumping 86 basis points to 7.43 percent. The retail delinquency rate has increased more than 115 basis points over the course of 2024 and is currently at a 2.5 year high. The largest newly delinquent retail loan was a massive single-asset, single-borrower loan with a balance of more than $500 million.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.58 percent, up 57 basis points from November.

The percentage of loans in the 30 days delinquent bucket is 0.26 percent, down 26 basis points for the month. Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on January 30, 2024

The Trepp CMBS Delinquency soared in November 2024, with the overall delinquency rate increasing 42 basis points to 6.40 percent.

This month, the office, multifamily and lodging property types all saw substantial increases in the sector-specific delinquency rates. The office delinquency rate surpassed 10 percent in November, increasing about 100 basis points to 10.38 percent. There were multiple large newly delinquent office loans that drove the office delinquency rate higher, with the office sector making up 60 percent of the net change in delinquent loan amount in November.

The percentage of loans in the 30 days delinquent bucket is 0.52 percent, up 9 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on December 26, 2024

The Trepp CMBS Delinquency Rate continued its upward trend in October 2024, increasing 28 basis points to 5.98 percent.

In October, all major commercial property types saw rate decreases or remained unchanged in the
delinquency rate, except for the office sector, which saw an increase of 101 basis points. The office
delinquency rate reached 9.37 percent, up from 8.36 percent in September. The last time the office rate breached 9 percent was in 2012 and 2013, when the overall CMBS delinquency rate reached an all-time high of 10.34 percent in July 2012.

The office sector made up more than 60 percent of the newly delinquent loan amount in October.

Although there was more than $3 billion in newly delinquent loans across major property types,
almost $2 billion in loan balance was either paid off or removed from the delinquent loan category
this month, resulting in about $1 billion in net increase in the overall dollar amount of delinquent
loans in October.

A large office loan that previously was current on payments became 30 days delinquent in October
and was a main driver for the office delinquency rate increase this month. All split pieces of this
loan, one of which is a single-asset single-borrower (SASB) loan, reflected this newly delinquent
status in October.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate
would be 7.73 percent, up 58 basis points from September.

The percentage of loans in the 30 days delinquent bucket is 0.43 percent, up 26 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on November 25, 2024

The Trepp CMBS Delinquency Rate continued its uphill climb in September 2024. Overall, the delinquency rate rose 26 basis points to 5.70 percent.

Most of the major property types contributed to the rise in the overall rate, but the retail sector contributed to about 50 percent of the net change in the total delinquent loan amount.

The retail delinquency rate rose 86 basis points in September, reaching 7.07 percent. The last time the retail delinquency rate was above 7.0 percent was in April 2022. A large single-asset single-borrower (SASB) deal that had previously been current on payments but now shows a delinquency status of nonperforming matured balloon, was one of many large retail loans to turn delinquent in September.

The office sector accounted for 37 percent of the $2 billion net increase in the overall dollar amount of delinquent loans in September, with the office delinquency rate increasing 39 basis points to 8.36 percent.

If we included loans that are beyond their maturity date but current on interest payments, the delinquency rate would be 7.15 percent, down six basis points from August.

The percentage of loans in the 30 days delinquent bucket is 0.17 percent, down eight basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on October 28, 2024

The Trepp CMBS Delinquency Rate inched up again in August 2024. Overall, the delinquency rate rose one basis point to 5.44 percent.

Unlike many months, the office sector was not responsible for the slight uptick in the overall rate. Although there was $1.25 billion worth of newly delinquent office loans, counteracting this was $1.55 billion worth of office loans that were delinquent a month prior, but were no longer delinquent in August (otherwise known as “cured”). In August, the property type that contributed the largest net change in delinquent dollars was the multifamily sector, with a total of $407.77 million.

The multifamily delinquency rate rose 67 basis points in August, reaching 3.30 percent.

This is the highest the multifamily rate has climbed in more than three years. The last time the rate even eclipsed the 3.00 percent mark was in July 2021. For context, there was a large multifamily loan that accounted for north of 54 percent of the property type’s newly delinquent total. This was a portfolio loan that had previously been current on payments but now shows a delinquency status of non-performing matured balloon.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 7.21 percent, up 43 basis points from July.

The percentage of loans in the 30 days delinquent bucket is 0.25 percent, unchanged for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on September 25, 2024

The Trepp CMBS Delinquency rate continued ticking up in July 2024. Overall, the delinquency rate increased 8 basis points to 5.43 percent.

The increase was primarily driven by the office sector, which accounted for almost two-thirds of newly delinquent loans in July. The office delinquency rate is now above 8 percent for the first time since November 2013 when the rate was at 8.58 percent. About $1.88 billion in office loans became newly delinquent in July, which was offset by just shy of $600 million in office loans that were 30+ days delinquent in June but were no longer delinquent in July.

The two property sectors that saw a decline in the delinquency rate were retail and lodging.

The largest loan that became delinquent in July contributed to about one-third of the amount of newly delinquent office loans. It was an office loan that had its delinquency status turn back to nonperforming matured balloon from performing matured balloon. The status on the loan has flipped back and forth a couple times since the loan defaulted at maturity in December 2023.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 6.78 percent, up 24 basis points from June.

The percentage of loans in the 30 days delinquent bucket is 0.25 percent, down 11 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on August 28, 2024

The Trepp CMBS delinquency rate jumped back above 5% in June 2024. The increase is somewhat expected after last month’s slight retreat given that the CMBS delinquency rate has been on an upward trend, increasing in four of the last six months. Overall, the delinquency rate increased 38 basis points to 5.35 percent.

The net increase in delinquent loans in June across the five major property types was just shy of $2 billion, with the office sector accounting for half of the net increase. There was roughly $1.87 billion in newly delinquent office loans during the month which was offset by roughly $900 million in office loans that were 30+ days delinquent in May but were no longer delinquent in June.

The other two sectors that posted large increases in their respective delinquency rates were retail and multifamily, accounting for 27 percent and 20 percent, respectively, of the $2 billion net increase in the overall dollar amount of delinquent loans in June. The retail sector had a roughly $525 million net increase in the volume of delinquent loans in June. The four largest loans that became delinquent in June had balances greater than $100 million and were all malls.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 6.54 percent, up 54 basis points from May.

The percentage of loans in the 30 days delinquent bucket is 0.36 percent, up 1 basis point for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on July 24, 2024

The Trepp CMBS Delinquency rate dipped back below 5 percent in May 2024, a welcome sign after last month’s surge. Overall, the delinquency rate declined 10 basis points to 4.97 percent.

The decrease was primarily driven by some sizable resolutions in the office sector. A little more than $2 billion in office loans resolved in May, either because the loans flipped back to non-delinquent during the month, or because the loan was disposed. Five office loans accounted for $1.7 billion of the $2 billion. If the $2 billion in office resolutions had remained delinquent, the overall May CMBS delinquency rate would have been almost 26 basis points higher at 5.33 percent and the May office delinquency rate would have been roughly 90 basis points higher at 8.48 percent.

Since the overall rate only decreased 10 basis points, what offset the sizable amount of office resolutions? Ironically, it was also due to office, at least in part. There were approximately $1.2 billion in newly delinquent office loans in May. In addition, the retail, lodging, and multifamily sectors also had sizable amounts of newly delinquent loans, with $995 million in newly delinquent retail loans, $238 million in lodging loans, and $245 million in multifamily loans. The net increase in delinquent loans for each of these three sectors was less since, similar to the office sector, there was a solid amount of loans that resolved in May as well.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 6.00 percent, up 16 basis points from April.

The percentage of loans in the 30-days delinquent bucket is 0.35 percent, up 12 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on June 27, 2024

The Trepp CMBS Delinquency rate surged in April 2024 after posting a slight decline the month prior. Overall, the delinquency rate increased 40 basis points to 5.07 percent, the highest since September 2021 when the rate was 5.35 percent.

The increase was driven by spikes in the office, lodging, and retail sectors, with more than a dozen loans with outstanding balances greater than $100 million becoming delinquent during April. The size of the month-over-month increases for each of these three property sectors was the highest in almost a year.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.84 percent, up 41 basis points from March.

The percentage of loans in the 30 days delinquent bucket is 0.23 percent, up 7 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on May 29, 2024

The Trepp CMBS Delinquency rate dropped slightly in March 2024. Overall, the delinquency rate declined 4 basis points to 4.67 percent.

The decline was almost exclusively due to the continued improvement in the retail sector as it notched its fourth consecutive monthly decline. The retail delinquency rate declined 47 basis points in March to 5.56 percent.

Ironically, the office sector was one of only two sectors that saw a decline in the delinquency rate. The office delinquency rate declined 5 basis points to 6.58 percent.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.43 percent, down 26 basis points from February.

The percentage of loans in the 30 days delinquent bucket is 0.16 percent, down 14 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on April 30, 2024

The Trepp CMBS Delinquency rate inched up in February. Overall, the delinquency rate rose 5 basis points to 4.71 percent.

In the heavily watched office segment, delinquencies jumped 33 basis points to 6.63 percent. The month-over-month increase in February is roughly in-line with the average monthly increase for the sector over the prior 12 months, increasing by 37 basis points per month on average.

The retail segment notched the largest decline of all property sectors for the month, dropping 24 basis points to 6.03 percent.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.69 percent, up seven basis points from January.

The percentage of loans in the 30 days delinquent bucket is 0.30 percent, up six basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on March 28, 2024

The Trepp CMBS Delinquency rate rose modestly in January The Trepp CMBS Delinquency rate rose modestly in January 2024. Overall, the delinquency rate rose 15 basis points to
4.66 percent.

Delinquencies in the heavily-watched office sector experienced their most significant increase since September 2023. The office delinquency rate jumped 48 basis points to 6.30 percent.

The multifamily segment notched a substantial decline, dropping 71 basis points for the month. The decline can be attributed to a large 2019 single-asset, single-borrower (SASB) apartment loan in San Francisco that was disposed in January.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.62 percent, up 13 basis points from December.

The percentage of loans in the 30 days delinquent bucket is 0.24 percent, up one basis point for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on February 29, 2024

The post 2024 CMBS Delinquency Rates appeared first on Commercial Property Executive.

Tractor Supply Co. will develop an 865,000-square-foot distribution center in Nampa, Idaho, marking a nearly $225 million investment in the local economy. The building targeting LEED certification can be expanded by 150,000 square feet, according to plans filed with the city’s planning and zoning commission.

The development team includes Kimley Horn and H&M Architects/Engineers. Groundbreaking is slated for this spring and completion is expected by late 2026 or early 2027.

Upon delivery, the facility will serve more than 200 Tractor Supply stores throughout the Pacific Northwest. The project’s blueprints also include a hazardous storage facility which is set to stock flammable, combustible and corrosive liquids for commercial distribution.

READ ALSO: Industrial Sector Settles After Supply Surge

The site is at the northeast corner of Midland Boulevard and Ustick Road, about 23 miles west of downtown Boise, Idaho, and roughly 5 miles from Nampa’s city center. The location is also close to U.S. Route 26, Interstate 84 and Caldwell Executive Airport.

This will be Tractor Supply’s first distribution center in the Pacific Northwest region. At a national level, the company operates 10 such centers in New York, Arizona, Maryland, Georgia, Texas and Indiana, among other states.  

Boise’s industrial market sees vacancies spike

Boise had 1.5 million square feet of build-to-suit and 560,000 square feet of speculative industrial space as of December, according to a Cushman & Wakefield fourth-quarter 2024 report. Completions totaled more than 3.6 million square feet.

Meanwhile, the vacancy rate went up for the fourth consecutive quarter at the end of the year, landing at 7.9 percent in December. The index climbed 270 basis points year-over-year as overall absorption was down 54.2 percent from 2024’s quarterly average.

The post Tractor Supply Co. to Build Idaho Distribution Center appeared first on Commercial Property Executive.

Nestle USA has opened its new beverage factory and distribution center in Glendale, Ariz., a 630,000-square-foot facility. The company broke ground on the $675 million project in 2022.

Initially, Nestle wanted to construct the facility within the 1,340-acre Woolf Logistics Center masterplan, on a site the company acquired in December 2021. That development was supposed to span 625,000 square feet and cost about $400 million.

The newly completed project is located at 8351 N. 150th Ave. The 139-acre property is less than 26 miles from downtown Phoenix and 29 miles from Phoenix Sky Harbor International Airport.

READ ALSO: Phoenix Industrial Development Remains Fast-Paced

Nestle will use the manufacturing building to produce creamers for several of its go-to brands, including Coffee mate, natural bliss and Starbucks. It plans to employ 300 people.

The facility has 10 drive-in doors and 38 dock-high loading doors, as well as levelers and bumpers, and is equipped with advanced technology and digital tools, allowing it to adapt production to meet evolving consumer needs and trends.

The factory recycles and repurposes as much as 75 percent of its treated water using advanced management tools. It also uses renewable electricity to reduce carbon emissions and is zero waste for disposal.

The new manufacturing facility represents Nestle USA’s 20th food and beverage factory, adding to its over $3 billion investment in upgrading its manufacturing capabilities across the U.S. in recent years.

Phoenix’s industrial pipeline tops the nation

Phoenix’s industrial sector continued to lead nationally for under-construction inventory, with 24 million square feet underway as of November, according to a CommercialEdge industrial report. The metro’s vacancy rate during the month clocked in at 7.2 percent, slightly below the 7.6 percent national average.

In November, Thompson Thrift completed the first phase of Germann Commerce Center, spanning 400,000 square feet. Upon full build-out, the project rising in the southeast Phoenix suburb of Queen Creek will total 1 million square feet.

Other recent notable developments in the area include Rockefeller Group’s completion of a 418,400 square-foot distribution center on 24 acres in Surprise, Ariz.  Surprise Pointe Commerce Center can fit as many as four tenants and has 80 dock doors.

The post Nestle Opens $675M Manufacturing Facility appeared first on Commercial Property Executive.

The seller was represented by Cushman & Wakefield’s National Industrial Advisory Group, which includes Jeff Chiate, Rick Ellison, Matt Leupold and Aubrie Monahan of the firm’s National IAG—West team, in collaboration with Will Strong, Michael Matchett, Jack Stamets, Molly Hunt and Madeline Warren of the firm’s National IAG—Mountain West team.

Limited industrial inventory in Reno helps to give Nuveen an edge.

The five freestanding buildings at 4681 and 4689 Aircenter Circle and 4745, 4855 and 4980 Longley Lane cover 27 acres. Suites range in size from 19,000 to 153,000 square feet. Features include 24-to-25-foot clear heights, extensive loading capabilities with 68 dock-high and 11 grade-level doors, as well as power to support wide-ranging operational needs.

Nevada’s fast-growing industrial market

Reno’s strong labor pool, industrial demographics and diverse transportation options have made it one of the fastest-growing industrial markets.

“Over the past decade, Tesla and other major companies have transformed Northern Nevada into a hub for e-commerce, logistics and manufacturing,” Bryce Clutts, president & CEO of Reno-based Metcalf Builders, told Commercial Property Executive.

“With large corporations such as Walmart, Google, Apple and Microsoft establishing key operations at the Tahoe Regional Industrial Center—and the many supporting businesses they attract—the demand for industrial and manufacturing development has grown significantly.”

This has become a primary focus for the Economic Development Authority of Western Nevada, as the region works to diversify its economy, he said.

READ ALSO: Industrial Report: Sector Settles After Supply Surge

General contractor Metcalf Builder will break ground next month on its latest industrial development at the Tahoe Regional Industrial Center.

Clutts also highlighted Nevada’s business-friendly economy as a key factor driving companies to relocate or expand to Northern Nevada, particularly in comparison to California.

“The quality of life for employees and the excellent options available in Nevada have been compelling reasons for businesses moving here,” he added.

In July, Barings supplied a $114 million loan to finance Airway Commerce Center, a recently completed warehouse/distribution property in Reno.

Approximately 900,000 square feet, the asset was developed by Tolles Development and its equity partners. Of the four buildings, the largest stands at 435,500 square feet.

Also that month, Clarion Partners acquired the 322,400-square-foot industrial building at 500 Denmark Drive in McCarran, Nev. Pure Development sold the asset for $41.7 million.

The post Nuveen Pays $90M for Industrial Portfolio appeared first on Commercial Property Executive.

Trammell Crow Co. and Diamond Realty Investments have completed Mid I-5, the largest speculative industrial facility ever built in the Pacific Northwest region. Project partners were civil engineer Gibbs & Olson, general contractor Sierra Construction and HPA Architecture. Construction began in August 2023.

The 1,185,327-square-foot building and soon-to-be LEED-certified property is at 2700 Talley Way in Kelso, Wash. The location is adjacent to Interstate 5 and the busy Exit 36, 2 miles north of the Washington-Oregon state line and less than 50 miles from Portland, Ore.

READ ALSO: Industrial Sector Settles After Supply Surge

The single-story, cross-dock facility has 8,000 amps of electrical service, 40-foot clear heights, 650 feet of building depth, 348 trailer parking stalls, 427 auto parking stalls and 219 dock doors.

There’s enough connected land to accommodate 475 additional trailer stalls, a yard area or 225,000 square feet of additional building space. Cara Nolan of CBRE Portland and Andrew Stark of CBRE Seattle handle the marketing and leasing efforts at the property.

“Portland has seen industrial development migrate further north and south along I-5 as developable property has become increasingly hard to find or problematic to develop,” Tyler Sheils, SIOR, senior managing director – Logistics and Industrial at JLL, told Commercial Property Executive.

He added the region has also seen an increase in tenant requirements or owner/user build-to-suits of more than 500,000 square feet over the last 10 or so years.

Low supply for large industrial spaces

In 2024, the wider Portland metro area saw three occupiers commit to spaces of more than 500,000 square feet.

“The Mid I-5 Industrial Park is the only project that could accommodate a 500,000-square-foot tenant in a modern Class A facility that is currently available,” Sheils said. “There is one additional project under construction that will deliver in 2025. Users of this size will have very few options to consider.”

Despite Portland experiencing negative absorption in 2024, direct rents continued to climb largely due to new construction, according to JLL research. They increased modestly in the third quarter to reach $0.87 per square foot on the shell, marking a 3.6 percent year-over-year increase.

After the market saw new sublease space increase by 80 basis points over the past two quarters, JLL reported that sublease availabilities have slowed substantially, adding a marginal 16,000 square feet in Q4.

The post Trammell Crow JV Delivers Northwest’s Largest Industrial Facility appeared first on Commercial Property Executive.

BKM Capital Partners has expanded an existing partnership with StepStone Real Estate, the real estate arm of StepStone Group, for the $154 million recapitalization of Pacific Business Center, a 10-building, 748,813-square-foot industrial campus in the Las Vegas market.

Constructed between 1996 and 1998, Pacific Business Center is comprised of 1045-1175 American Pacific Drive, 160-194 Gallagher Crest Road and 1060-1110 Mary Crest Road in Henderson, Nev. The Class A campus is 90 percent occupied with a diverse mix of high-quality tenants. In-place rents are projected to be 30 percent below market rate, giving BKM an opportunity for immediate value creation. The industrial center is in a designated Foreign-Trade Zone.

BKM, a Newport Beach, Calif.,-based real estate fund manager and operator that focuses exclusively on multi-tenant industrial assets in the Western United States, acquired the industrial center’s properties from Northwestern Mutual Real Estate as a portfolio transaction in July 2019 for $113 million. At that time, it was the firm’s largest deal.

The institutional-grade assets have had more than $12.4 million in capital improvements since 2010. Projects included installing high-quality HVAC and EVAP systems and LED lighting, as well as upgrading office finishes and painting building exteriors. Other features include 24- to 28-foot clear heights, ESFR sprinkler systems and new TPO roofs. BKM has since made other improvements to the facilities, including cosmetic renovations in 2017, according to CommercialEdge. Several of the buildings have two-level office build-out components, CommercialEdge reported.

Partnering with StepStone

In August 2023, BKM formed a partnership with StepStone Real Estate for a GP-led secondary direct transaction that included ownership in Pacific Business Center. SRE acquired interests in two assets, including Backlot Burbank, a light industrial property in Burbank, Calif., leased to entertainment companies. As part of that partnership agreement, SRE would invest in other small- and mid-bay industrial properties across Western U.S. markets.

READ ALSO: Stars Align for CRE Secondary Funds

The recapitalization of Pacific Business Center increases SRE’s ownership in an asset and market that both firms view favorably. BKM notes Las Vegas’s dynamic industrial market fundamentals combined with the asset’s rent growth potential and stable cash flow provide a strong foundation for success.

The Las Vegas industrial market is a versatile market that caters to both big-box tenants and smaller occupiers, with strong demand for spaces under 50,000 square feet, according to Cushman & Wakefield. The market has seen steady leasing activity, but an influx of new supply may give tenants greater leverage in lease negotiations, the firm stated in its third-quarter 2024 report for the Las Vegas industrial market. However, rising vacancy rates – the overall vacancy rate was 8.8 percent, up 180 basis points quarter over quarter in Q3 – may delay new development, which could help balance supply and stabilize vacancy levels, according to Cushman & Wakefield.

BKM’s other activities

The recapitalization of Pacific Business Center represents another milestone for BKM, which has invested more than $4.5 billion in more than 120 small and mid-bay light industrial properties since 2013. The firm has a value-add strategy and targets under-managed and under-capitalized assets. Over the past two years, BKM has acquired high-quality assets at pricing well below replacement cost. It has also undertaken several other recapitalizations.

In December, BKM partnered with Kayne Anderson Real Estate for a $550 million recapitalization of a nine-property light industrial portfolio totaling more than 2.1 million square feet in several urban markets. The largest of the properties is Hughes Airport Center, a 672,424-square-foot asset in Las Vegas. The rest of the portfolio is located in California, Arizona, Colorado and Washington state.

That same month, BKM recapitalized three San Diego business parks from its BKM Industrial Value Fund II LP, with Tokyu Land US Corp. for $76.9 million.

More recently, BKM acquired West Belt Business Park, a five-building industrial park totaling 260,887 square feet for $34.1 million in Houston’s Westchase submarket. Longpoint Realty Partners sold the property, according to CommercialEdge data.

The post BKM Recapitalizes Las Vegas Industrial Center for $154M appeared first on Commercial Property Executive.

Rosewood Property Co., in a partnership with Pillar Commercial, has purchased Plano Commerce Center, a two-building industrial asset in Plano, Texas. The seller of the 200,765-square-foot Class A property was Provident Realty Advisors.

MetLife Investment Management provided nearly $20.6 million in acquisition financing, according to Collin County public records.

The properties are 71.1 percent leased to a mix of tenants, such as Senderra Specialty Pharmacy, Ulrich Medical USA, Cheer Athletics and Acre Security. Pillar Commercial is currently marketing the remaining 58,000 square feet for lease.

Plano Commerce Center includes two one-story industrial facilities at 3700 and 3712 E. Plano Parkway. Built in 2022, the properties feature 24-foot clear heights, loading doors, dock-high doors, an ample truck court and 222 vehicle parking spots.

The 22-acre property is within the Metroplex’s East Plano submarket, close to U.S. Routes 75 and 190. Dallas-Fort Worth International Airport is 31 miles away, while Irving, Texas is 36 miles away. Fort Worth, Texas is within 54 miles of Plano Commerce Center.

DFW led the U.S. in sales

Dallas-Fort Worth led the nation in year-to-date sales as of November, according to a recent CommercialEdge report. The Metroplex recorded $4.2 billion in industrial investment volume, with assets changing hands at an average price of $113 per square feet. The market had one of the lowest average sales prices in the country, clocking in below the national figure of $128 per square foot.

In December, Longpoint Partners picked up Valley View Business Center in Irving, Texas, from Brookfield Asset Management. The 414,871-square-foot distribution center within the Las Colinas submarket was fully occupied at the time of the deal.

During the same month, Maryland-based WareSpace acquired a 241,004-square-foot industrial building in Addison, Texas. The property is within Inbound on Inwood, an 1.1 million-square-foot redeveloped industrial campus owned by M2G Ventures and Pennybacker Capital.

The post Rosewood, Pillar JV Buys DFW Industrial Asset appeared first on Commercial Property Executive.

Constructed between 1984 and 2000, the properties are currently 96 percent occupied. They provide easy access to the New Jersey Turnpike and downtown Philadelphia. Having a multiple-building setup and varying suite sizes, the portfolio also gives tenants significant growth flexibility.

Brennan will continue to operate the portfolio, which it bought in 2017. Since the acquisition, the company has upgraded the properties, including converting office space to industrial.

Philadelphia’s office market slowed and prices dropped in the fourth quarter, with vacancy rising 510 basis points over the past 12-month period ending in October, according to CommercialEdge.

Chris Massey, managing principal at Brennan Investment Group, said that strong demand and tight occupancies for small-bay suite sizes throughout the overall market have made the portfolio more attractive.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

“Vacancy rates are low-single digits for this type of space, and there is basically no new construction due to high costs for building small footprint buildings,” he told Commercial Property Executive. “We believe our in-place rents are still significantly below where new leases are getting done.”

Brennan Investment Group’s portfolio totals approximately 56 million square feet across 29 states.

Philadelphia’s strong light-industrial demand

Marcus Partners’ Mid-Atlantic team has been acquiring portfolios of light industrial product in the suburban Philadelphia metro.

“The metro offers an expansive regional highway network and a deep labor pool and features exceptional population density and demographics,” Ryan McDonough, the company’s principal & CIO, told CPE.

The portfolios typically feature functional, Class B product needing physical repositioning and a diversified, multi-tenanted rent roll with shorter-term leases. “We are buying at a healthy discount to replacement cost with in-place rents that offer mark-to-market upside. This compelling risk-reward profile works across various economic scenarios, including a “higher-for-longer” rate environment,” McDonough added.

The post Brennan Recapitalizes 1 MSF Portfolio Near Philly appeared first on Commercial Property Executive.

SL Industrial Partners has acquired a 925,391-square-foot, 17-building portfolio of industrial flex space across three business parks in Chicago’s suburbs. Cushman & Wakefield’s Vice Chairs Mike Tenteris, Adam Tyler and Jim Carpenter represented the seller.

Stockbridge previously owned the Class A assets, according to CommercialEdge information. The firm had acquired them in 2019 for a combined $73.4 million.

Located in Buffalo Grove, Ill., Vernon Hills, Ill., and Elgin, Ill., in the Lake County and Northern Fox Valley submarkets, the properties were 92 percent leased overall at the time of sale. The parks will be rebranded under the SL Business Center name.

READ ALSO: 2024 Industrial Net Lease Sales and Cap Rates

SL Industrial Partners is a member of The Silverman Group. The acquisition more than doubles the firm’s presence in the Chicago area, expanding its local portfolio to just under 2 million square feet.

Blake Silverman, president of The Silverman Group, told Commercial Property Executive his company is assessing opportunities to enhance these newly purchased properties. “A key part of our approach involves rebranding the parks and strategically repurposing availabilities to offer light industrial and flex configurations. This allows us to better cater to the specific requirements of small business tenants, while ensuring the properties remain versatile and aligned with market needs.”

The industrial parks, up close

SL Business Center at Buffalo Grove, at 1601 Barclay Blvd., is an eight-building park totaling 406,406 square feet of industrial flex space. Developed between 1989 and 1994, the single-story buildings range from 42,000 to 69,000 square feet and are suitable for office, industrial and manufacturing uses. Features include multiple dock and drive-in doors, and 15-foot clear heights. Its location has direct access to U.S. Route 45 and is close to Interstate 94.

SL Business Center at Vernon Hills, carrying the address 100 N. Fairway Drive, has five buildings totaling 281,340 square feet. Ranging from 43,000 to 69,000 square feet, the facilities feature office and flex suites, multiple dock and drive-in doors, and 14-foot, 6-inch clear heights. The park, located near U.S. Route 60 and Interstate 94, was completed in the late 1990s.

SL Business Center at Elgin is a four-building complex at 2511 Technology Drive comprising 237,645 square feet. Delivered between 2001 and 2003, the single-story structures range from 59,000 to 60,000 square feet and offer 18-foot clear heights. 

Deep strength

The Chicago industrial market witnessed a total investment volume of nearly $2.5 billion last year from January to November, according to a CommercialEdge report. The metro led the Midwest and ranked fourth nationally after Dallas ($4.2 billion), the Bay Area ($3 billion) and Houston ($2.8 billion). Assets changed hands for $94 per square foot, way below the national average of $128 per square foot.

In one of the more recent transactions, Standard Real Estate Investments and Trammell Crow Co. sold a 217,000-square-foot industrial property in Woodridge, Ill. IDI Logistics purchased the asset for $33.6 million.

The post SL Industrial Partners Buys Chicagoland Light Industrial Portfolio appeared first on Commercial Property Executive.

Foxx Development Inc. has signed a 102,099-square-foot, full-building expansion at Britannia Technology Park, a 203,244-square-foot industrial campus in San Diego’s Otay Mesa submarket. Hines owns the two-building property through its Hines U.S. Property Partners investment fund. Cushman & Wakefield represented the landlord.

Foxx initially committed to the 101,145-square-foot warehouse at 7222 Airway Road in mid-2024. The new deal, involving the facility at 7498 Colchester Court, doubled the tenant’s footprint at the campus, which became fully leased.

READ ALSO: SoCal Industrial Market’s Comeback Story

Britannia Technology Park comprises two facilities that were part of the 52-acre Brown Field Technology Park. Hines picked up the assets in late 2023 for $60.9 million from developer Murphy Development Co., according to CommercialEdge.

Completed in 2023, the buildings feature 32- to 34-foot clear heights, heavy power and office build-out components. Additionally, the campus includes rooftop solar capacity, a fenced yard area, outdoor patio spaces, EV charging stations, skylights and a total of 328 vehicle parking spots.

The campus occupies almost 14 acres near State Route 905, interstates 5 and 805 and Brown Field Municipal Airport. The U.S.-Mexico border is neighboring the property, while San Diego International Airport is 21 miles away.

Cushman & Wakefield Vice Chairman Brant Aberg negotiated on behalf of the landlord.

San Diego industrial leasing slows down

San Diego’s industrial vacancy rate reached 6.5 percent during the fourth quarter of last year, up by 50 basis points over the quarter, according to a Cushman & Wakefield report. The was the highest rate recorded in the market since the third quarter of 2014.

New leasing deals totaled 665,000 square feet during the last quarter of 2024, down 46 percent quarter-over-quarter. However, the leasing volume for the full year new deals increased by 8 percent when compared to 2023.

The post Hines’ San Diego Park Reaches Full Occupancy appeared first on Commercial Property Executive.

Robinson Weeks Partners has acquired two industrial buildings spanning 831,974 square feet in Olive Branch, Miss., a Memphis, Tenn., submarket. Hillwood previously owned the asset duo, according to CommercialEdge data. Cushman & Wakefield represented the seller.

This purchase marked Robinson Weeks’ first purchase under its Industrial Acquisition Fund. The investment vehicle, together with the Robinson Weeks Industrial Opportunity Fund IV, garnered commitments of roughly $152 million in 2024.

The two facilities are part of the 10-building Legacy Park, a 6.8 million-square-foot industrial campus developed by Hillwood. The property is roughly 3 miles from the Olive Branch Airport, while the Memphis International Airport is about 16 miles northeast. A BNSF railway station operates some 10 miles away.

READ ALSO: Industrial Sales Prices Inched Up in 2024

Encompassing 448,942 square feet, the cross-dock property at 11363 Progress Way features 36-foot clear heights while the 383,032-square-foot rear-load building at 11384 Progress Way includes 32-foot clear heights. The duo comprises a combined total of 138 dock doors, 514 auto parking spots and 182 trailer spaces.    

Both assets were fully leased at the time of sale. The tenant roster includes Wheeler Fleet Solutions, which operates an e-commerce fulfillment and distribution center, and Buske Logistics, a warehousing and 3PL company.

Cushman & Wakefield Vice Chairman Stewart Calhoun and Executive Director Casey Masters represented Hillwood.

Robinson Weeks’ growing industrial footprint

Since Robinson Weeks closed its first real estate fund in 2010, the company has acquired and developed 22.2 million square feet of Class A industrial warehouse space valued at $2 billion.

One of its developments is in North Charleston, S.C. The firm broke ground on the 635,328-square-foot industrial project dubbed Charleston Global Crossing early last year. At the time, it was considered the largest speculative industrial project in the city.

Memphis industrial assets sell for less as pipeline ramps up

Metro Memphis’ industrial investment volume amounted to $362 million during the first 11 months of 2024, according to a CommercialEdge report. Assets traded for $57 per square foot—significantly below the national average of $128 per square foot. The market posted the lowest prices across the Southeast, below Charlotte, S.C., ($79 per square foot) and Atlanta ($115 per square foot).

Meanwhile, the metro’s industrial pipeline totaled 10.5 million square feet. That represented 3.5 percent of total stock, an index which ranked third nationally. Only Phoenix (5.7 percent) and Kansas City, Mo., (3.9 percent) surpassed the Home of the Blues.

As the market’s construction activity ramped up, the industrial vacancy rate stood at 8.6 percent in November, 110 basis points higher than the national average, the report reveals. Industrial rents grew by 4.6 percent year-over-year through November, below the national average growth of 6.9 percent during the same period.

One of the market’s significant industrial deals of last year was also a portfolio transaction. Faropoint purchased a 1.7 million-square-foot, 16-building industrial portfolio in Memphis and Jacksonville, Fla., in August 2024. The collection, which included 12 assets in Memphis, sold for $105 million in an off-market transaction.

The post Hillwood Sells 2 Memphis Industrial Assets appeared first on Commercial Property Executive.

Bridge Industrial has taken a 5 percent stake, while CPP Investments holds the other 95 percent. The partners aim to find properties that will speed delivery times in key markets with limited space for industrial warehouse development.

This is the second partnership between CPP Investments and Bridge. The initial develop-to-core venture, formed in 2021, deployed capital into new construction projects in the Los Angeles and Miami markets.

In July, Bridge Industrial began demolishing Ryder Systems’ former headquarters in Miami. It intends to develop a two-building, 326,448-square-foot Class A industrial complex in its place. The completion of Bridge Point Flagler Station is expected in the third quarter of 2025.

More recently, in December, Bridge Industrial purchased a two-building industrial portfolio totaling 315,422 square feet in Kent, Wash. Link Logistics sold the assets through an affiliated entity for $64.2 million, according to King County public records.

Industrial joint venture investments

Other joint ventures are underway in the industrial market. It’s an interesting time, given many of the leases signed in 2020 and 2021 are soon up for renewal. The lack of new development means potentially significant price increases.

Redfearn Capital formed a joint venture with TPG Angelo Gordon to strategically invest in industrial assets across the Southeast, with a particular focus on Florida, where industrial vacancy rates remain exceptionally low, according to Alex Redfearn, founder, president & CEO of Redfearn Capital.

Among several investments made through this partnership, one of the most notable was the $47.8 million acquisition of an eight-building industrial portfolio in Jacksonville last year, Redfearn told Commercial Property Executive. The portfolio, totaling 380,589 square feet, is strategically located in the city’s Westside and Southside submarkets.

Altman Logistics Properties is part of two entities involved in purchasing and planning the development of separate industrial projects in New Jersey.

In October, Altman acquired a 10.5-acre site for the development of Apex Logistics at Parsippany in Parsippany, N.J., by a joint venture between Altman Logistics Properties (formerly known as BBX Logistics Properties), the family office Renard Investments and DHS Real Estate Investment Management B.V., based out of Amsterdam, The Netherlands. The project will comprise approximately 140,000 square feet of Class A logistics space.

In November, Altman acquired a 15.7-acre site to develop Apex Logistics at Hamilton in a joint venture with DWS. The project is expected to comprise approximately 170,800 square feet of Class A logistics space in Hamilton Township, N.J.

The post CPP Investments, Bridge Industrial Launch $789M JV appeared first on Commercial Property Executive.

Company officials describe the state’s largest market as ideal for industrial outdoor storage investment because of its outsized population and economic growth that attracts major national tenants. The region also has an extensive infrastructure and thriving logistics network. Each of the newly acquired properties are located within 20 miles of downtown Dallas, providing access to the metro’s network of state and interstate highways, international airports and freight transportation.

Alterra, a prominent player in the growing IOS sector that has acquired more than 300 sites nationwide, focuses on prime locations with access to essential infrastructure as well as properties that are situated in dense, infill industrial clusters surrounded by other IOS users.

Leo Addimando, managing partner & CEO of Alterra IOS, said the firm was incredibly active in 2024, acquiring 102 IOS properties. One of its biggest milestones last year was closing on a 51-property portfolio sale to Peakstone Realty Trust in an off-market transaction valued at $490 million. The assets are located in 14 states and span 440 usable acres. The non-development portfolio, 45 of the 51 properties sold, was fully leased at closing. Two of the properties are in the Dallas-Fort Worth market and four are in Houston. Other assets are located in the Philadelphia, Atlanta and Nashville, Tenn., markets.

READ ALSO: Industrial Sector Settles After Supply Surge

Addimando said the portfolio sale underscored the success of the Alterra IOS investment model and institutional investment in a previously a fragmented, relatively unknown asset class.

“We’re excited about the trajectory of IOS, in tandem with our firm’s continued ability to build relationships with IOS owners, industry-leading tenants and brokers throughout the country,” Addimando told Commercial Property Executive. “We look forward to continued growth in 2025 and are excited about the future of the sector as it continues to de-fragment and institutionalize.”

Newly acquired DFW assets    

The largest of the newly acquired IOS properties is 14.8 usable acres at 7050 Jack Newell Blvd. S. in Fort Worth, which includes 14,000 square feet of warehouse space. The property also features recently completed site work such as new fences, office renovations and a new roof. It is located 1 mile from I-30, I-820 and Highway 121 S. Bo Puckett and Caleb McCoy of JLL facilitated the transaction.

8738 Forney Road in Dallas has 10.1 usable acres and 14,100 square feet of warehouse space. The fully paved-rail served site is 8 miles from downtown Dallas and provides easy access to I-30 and I-635. The property is fully leased to a national distributor of specialty business materials. Ricardo Camarena of Marcus & Millichap assisted in the acquisition.

2260 Market St. in Garland, Texas, has 7.4 usable acres and includes 87,780 square feet of warehouse space. The fully paved site also features a full concrete yard. Located 12 miles northeast of Dallas, the property has immediate proximity to I-635. It is fully leased to a leader in exterior and interior building product supplies. Alexander Harrold of Matthews Realty facilitated the transaction.

A leading national lawn care company leases 2420 113th St. in Grand Prairie, Texas, which has 2.5 usable acres and 13,276 square feet of warehouse space. The fully improved site has easy access to I-30 and Routes 360, 161 and 183. Robert Morris of Rubicon Representation handled the acquisition.

Alterra’s recent deals

In December, Alterra acquired three IOS sites totaling 23 usable acres in the Portland, Ore., market expanding the firm’s regional footprint to six assets. The sale included properties in Portland, Milwaukie, Ore., and Hubbard, Ore. The largest of the assets is fully leased by a regional building materials supplier and features a 20,965-square-foot warehouse on 11 acres.

A month earlier, Alterra purchased a seven-property portfolio with assets in Dallas, Minneapolis, Indianapolis, Chicago, Cleveland, St. Louis and Nashville metro areas. The fully leased portfolio has a total of 23 usable acres.

Alterra also acquired four properties totaling 17 acres in the Greater Houston area in September.

The post Alterra IOS Expands Dallas-Fort Worth Portfolio appeared first on Commercial Property Executive.

Sealy & Co. has acquired the Stateline and Crossroads Logistics Package, a 589,598-square-foot portfolio comprising two Class A distribution facilities in Southaven, Miss., and Olive Branch, Miss. Both buildings are in the DeSoto County submarket of Memphis, Tenn. JLL worked on behalf of the seller, IDI Logistics.

The properties that changed hands are Stateline Building K, totaling 347,604 square feet, and the 241,994-square-foot Crossroads Building L. They are both fully leased to Motivational Fulfillment & Logistics Services and American Musical Supply.

The facilities have 32-foot clear heights, flexible layouts for single or multi-tenant use, ESFR sprinkler systems, a total of 58 grade-level doors, 48 dock-high doors and ample parking spaces.

READ ALSO: Industrial Sector Settles After Supply Surge

Located at 1660 Stateline Road, the Southaven property is part of Stateline Business Park, a 230-acre master-planned campus totaling approximately 4 million square feet across 10 buildings. The Olive Branch facility at 12914 Stateline Road is one of the warehouses at Crossroads Distribution Centers, a 7 million-square-foot industrial campus with 12 buildings. Both industrial parks were developed by IDI Logistics.

Situated 13 miles apart, the industrial buildings are close to Interstate 55 and U.S. Highway 78. Memphis International Airport is 20 miles away, while the Port of Memphis is 27 miles away.

Senior Managing Directors Matt Wirth, Britton Burdette and Dennis Mitchell and Director Jim Freeman with JLL negotiated on behalf of the seller. The company’s Managing Director Jack Wohrman is the exclusive leasing agent for both properties.

Low investment activity in Memphis

Despite having one of the most active industrial pipelines in the country, Memphis’ sales volume was one of the lowest in the South at the end of November, a recent CommercialEdge report shows. Investments totaled $362 million in 11 months—the lowest volume across Southern markets and the third-lowest in the U.S. Properties changed hands at $57 per square foot, way below the national average of $128 per square foot.

In one of the more recent deals, Phoenix Investors acquired a 411,500-square-foot industrial asset in Union City, Tenn. The company picked up the property from MVP Group International, with plans to substantially improving it.

The post Sealy & Co. Picks Up Memphis Industrial Duo appeared first on Commercial Property Executive.

CapRock Partners has sold West Valley Logistics, a 270,000-square-foot industrial asset in Pomona, Calif. A Southern California-based alternative fashion company acquired the property. Stream Realty Partners and Colliers represented the seller and the buyer, respectively.

The new owner plans to establish its corporate headquarters at the building. CapRock will assist the buyer with interior design and the construction of tenant improvements.

West Valley Logistics came online last month. CapRock broke ground on the project in the second quarter of 2023, financing its construction with a $50 million loan issued by JPMorgan Chase, according to CommercialEdge information.

READ ALSO: SoCal Industrial Market’s Comeback Story

Located on nearly 13 acres at 4200 Valley Blvd., West Valley Logistics is some 30 miles east of downtown Los Angeles. State routes 57 and 60 are less than 4 miles away, while Interstate 10 is about 6 miles from the facility. The Ontario International Airport operates less than 17 miles away.

The LEED-certified, rear-load building features 40-foot clear heights, 28 dock-high doors and two grade-level doors, as well as 240-foot truck courts and 10,000 square feet of office space. There are 130 auto and 45 trailer parking spaces at the property.

Stream Executive Vice Presidents Matt Moore and Wes Hunnicutt, together with Associate Michael Torres, represented the seller. Colliers Senior Executive Vice President Mike Hartel and First Vice President Nick Velasquez brokered the deal on behalf of the buyer.

CapRock’s industrial dealings

CapRock’s industrial portfolio—including its development pipeline—encompasses roughly 19 million square feet across Western markets and Texas, where the company made its first purchase in April.

After a few months, CapRock announced its first ground-up development in the Lone Star State. The three-building campus totaling 518,000 square feet will also rise in the Metroplex.

In the West, the firm marked another premiere in July, with the $81.5 million purchase of a 707,010-square-foot industrial building in Sparks, Nev. This was CapRock’s first acquisition in northern Nevada.

Los Angeles’ sizeable industrial investment scene

Greater Los Angeles’ industrial sales volume totaled some $2.5 billion during the first 11 months of last year, according to a CommercialEdge report. The metro ranked second among the Western markets after the Bay Area ($3 billion), but equaled Phoenix ($2.5 billion) and surpassed the Inland Empire ($1.9 billion).

Although the City of Angels kicked off 2024 with a strong industrial rent growth—being one of the few markets that posted a double-digit increase—the rate in November was 8.1 percent, down from 11 percent in July, the same source shows.

The Southern California industrial real estate market witnessed a resurgence of the owner-user buyer profile, according to prepared remarks by Taylor Arnett, senior vice president at CapRock. One such example was Ardmore Home Design’s October acquisition of the 282,377-square-foot asset it had occupied since 2020. LBA Realty sold the City of Industry property.

The post CapRock Sells Greater Los Angeles Industrial Asset appeared first on Commercial Property Executive.

The deal, collateralized by eight properties, covers 163 acres of industrial outdoor storage, as part of a portfolio in Dallas; Houston; Laredo, Texas; Phoenix; San Antonio; Commerce City, Colo.; Detroit and Savannah, Ga.

Lantern Real Estate Advisors + Partners represented GreenPoint in the transaction.

Realterm has been on an IOS run, most recently picking up 2340 Rose Place W. in Roseville, Minn., and joining Titan Development in a deal to build a Class A, 440,300-square-foot industrial project in Laredo.

About a year ago, Realterm took the plunge by acquiring three Northeast outdoor storage truck terminals from Yellow Corp.’s Chapter 11 bankruptcy.

Regional banks’ retreat, high interest rates force move

Realterm’s entry in providing capital is a logical move, according to Ivan Kustic, vice president, MetroGroup Realty Finance.

“Knowledgeable, successful real estate managers, providing capital to various asset classes of properties that they have owned and managed for many years is a prudent move in today’s environment,” Kustic told Commercial Property Executive.

Current yields achieved by short-term capital providers are reasonable risk-based returns, Kustic observed. “Their experience and knowledge of the assets help efficiently execute the lending process. A void has been created by regulated capital sources in the short-term/bridge capital market. We have seen the success of recent entries in this area of bridge type of capital by debt funds, life companies and CMBS lenders.”

According to Robert Wasmund, founder & CEO of Ascent Developer Solutions, the company launched its lending offering to fill a void in customizable and reliable real estate financing amid a market disrupted by quantitative tightening, the retreat of regional banks and high interest rates.

“The rate curves continue to make this a challenging market to transact,” Wasmund told CPE. “A reduction in rates would lead to more supply being available for development.”

READ ALSO: What’s Ahead for CMBS in 2025?

The U.S. government is encouraging greater participation of private capital in the lending industry. As a result, institutions and private real estate companies of all types are venturing into the so-called “private capital” space, according to David Frosh, CEO at Fidelity Bancorp Funding.

“Regional banks remain under significant constraints and face challenges that could persist for years if interest rates do not decline,” he said.

“Enticed by promises of high returns, investors are readily providing the necessary funding,” Frosh added. “Companies like Realterm are increasingly entering this space, bringing entrepreneurial optimism and strong execution skills.”

But while such optimism may serve private real estate investment companies well, lending is a fundamentally different business, Frosh cautioned.

“Unlike real estate investment, lending leaves almost no room for error. Optimists often do not make good lenders over the long term. Successful lenders operate with the assumption that a severe downturn is always imminent. The current wave of enthusiasm around private capital and the significant leverage of this capital should serve as a cautionary signal for those entering the field.”

The post Realterm Makes Lending Debut appeared first on Commercial Property Executive.

Ares Management Real Estate has acquired a 198,720-square-foot Class A distribution center in Taunton, Mass. The property changed hands for nearly $44.3 million, according to Bristol County public records.

The buyer made the acquisition through one of its real estate funds and will manage the property through Ares Industrial Management.

JLL represented the seller, a fund managed by Brookfield Asset Management.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The property is at 151 Charles F. Colton Road and came online in 2014. The single-story industrial facility features 28-foot clear heights, ESFR sprinklers, 30 loading docks and 23 trailer parking spots. It is fully leased by Sullivan Tire, according to CommercialEdge. The same data provider shows that the property previously changed hands in 2021, when Brookfield Asset Management paid $29 million to seller The Maggiore Cos.

The 15-acre property offers access to major transportation corridors such as interstates 495 and 95, as well as to U.S. Route 24 and U.S. Highway 44, allowing easy connectivity to the Providence, R.I., area and to the Greater Boston region.

Boston is within a 42-mile drive, while Norwood Memorial Airport is 24 miles away and Providence is 28 miles from the property. Additionally, the distribution center is within Myles Standish Industrial Park, the largest master-planned industrial campus in the state.

Managing Director Michael Restivo and Director David Coffman with JLL worked on behalf of the seller.

Boston posts high industrial sales prices

Industrial investment activity remained stable throughout 2024, with $54.6 billion in deals at a national level recorded year-to-date through November, a recent CommercialEdge report shows. The amount will likely match 2023 deals.

Across Northeastern markets, Boston recorded $639 million in industrial sales, surpassing only Bridgeport in the region. Meanwhile, Boston sale prices averaged $161 per square foot, surpassed only by New Jersey’s $218 per square foot in the region.

A recent deal in the area is B&D Holdings’ $18.5 million acquisition in Avon, Mass. The company purchased a 109,300-square-foot industrial property from a joint venture between Oliver Street Capital and Bain Capital Real Estate.

The post Ares Management Pays $44M for Boston-Area Asset appeared first on Commercial Property Executive.

BKM Capital Partners has acquired West Belt Business Park, a five-building industrial park totaling 260,887 square feet for $34.1 million in Houston’s Westchase submarket. Longpoint Realty Partners sold the property, CommercialEdge shows.

JLL negotiated on behalf of the seller while the buyer represented itself. The buyer secured a $27 million bridge loan originated by LoanCore Capital, with a maturity date set for 2027, according to Harris County public records.

The industrial park last changed hands in 2021, when Longpoint Realty Partners picked it up from Triten Real Estate Partners.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The acquisition marks BKM Capital Partners’ first investment in Texas, expanding its footprint to seven states in the Western region of the country. Dating back to 1978, West Belt Business Park includes five one-story buildings at 10611 and 10641 Harwin Drive. The approximately 15-acre asset is close to Interstate 69 and 26 miles from William P. Hobby Airport, while being 31 miles from George Bush Intercontinental Airport.

The light industrial buildings include spec suites ranging from 770 square feet to 23,000 square feet and a total of 436 vehicle parking spots. BKM Capital Partners purchased the property at a 41 percent discount to replacement cost and plans to invest $3.3 million in capital improvements, such as roofing and architecture enhancements, or operational upgrades such as parking spaces, landscaping, signage and tenant upgrades, according to the company.

Additionally, West Belt Business Park is fully leased with an average lease term of 2.9 years. Tenants at the industrial park include Witmart, Matrix Power Technologies, Great Plains Supply, Sifax Global and BuildStrong Academy, among others, according to CommercialEdge.

JLL’s Senior Director Charlie Strauss, together with Director Lance Young and Capital Markets Analyst Clay Anderson represented the seller during negotiations.

Recent industrial deals in the metro

Houston’s investment volume reached $2.8 billion year-to-date through November 2024, ranking third nationally, a recent CommercialEdge report shows. Assets in the metro changed hands at an average sale price of $108 per square foot, making it one of the most affordable metros in the Southern area.

Recent notable deals in the metro include Stonepeak’s $244 million acquisition of a six-property logistics portfolio. Starwood Capital Group sold the 2.3 million-square-foot asset with facilities situated close to the Port of Houston.

In October last year, MDH Partners purchased a 996,482-square-foot distribution center in Baytown, Texas. Dubbed Cedar Port IKEA, the property includes two facilities fully occupied by Ikea and is part of Cedar Port Industrial Park, the largest master-planned industrial park in the country.

The post BKM Capital Enters Texas With $34M Industrial Buy appeared first on Commercial Property Executive.

Miramar Capital has purchased Serrano Industrial Park, a three-building, Class A campus totaling 332,725 square feet in Jurupa Valley, Calif., for $86 million. CBRE negotiated on behalf of the seller, PreZero.

Completed in 2019, the manufacturing buildings are at 4350, 4388 and 4420 Serrano Drive. Collectively, they feature 28 dock-high and three grade-level doors, 30- to 32-foot clear heights, heavy power and fully secure concrete truck courts.

The industrial park is zoned specifically for manufacturing—not distribution—and has conditional use permits for recycling of various materials and the handling of organic waste, according to listing information from CBRE.

READ ALSO: Inland Empire Industrial Assets Trade Less Often, but Fetch Top Dollar

PreZero originally occupied the entire property, but now occupies just the asset’s largest building at 4420 Serrano Drive, Miramar Managing Partner Peter Eichler told Commercial Property Executive.

The property is in the northwest corner of Riverside County, in the Inland Empire West submarket. The location has easy access to State Route 60, Interstate 15 and the San Pedro Bay Port complex; it also is 7 miles from Ontario International Airport.

Joe Cesta and Darla Longo of CBRE National Partners, along with Erik Wanland, represented PreZero in the transaction. Cesta noted that demand in the Inland Empire is substantial for industrial facilities that can support manufacturing tenants that require heavy power.

Healthy variety

The Inland Empire currently enjoys the nation’s highest five-year asking rent growth forecast, with 28.9 percent growth projected from this year to 2029, according to CBRE Econometric Advisors.

In addition, the Inland Empire West saw 8.7 million square feet of net absorption in 2024, even as total square footage under construction fell by 64 percent year-over-year.

One of the underway projects is Schaefer Logistics Center. Developed by Lovett Industrial, the facility will come online in Chino, Calif., also in the Inland Empire West submarket.

The post Miramar Capital Pays $86M for Inland Empire Industrial Park appeared first on Commercial Property Executive.

Brookfield Asset Management has sold an industrial outdoor storage portfolio totaling 631,604 square feet for more than $277 million.

Realterm acquired the 13 properties located in seven key logistics markets in the U.S. such as the Inland Empire, Chicago, Seattle, Northern New Jersey, the Bay Area and Orlando, Fla. According to CommercialEdge, Realterm owns 250 industrial properties totaling 21.8 million square feet, including a recently acquired IOS facility in Roseville, Minn.

The 97 percent-occupied portfolio that Brookfield sold now totals 131 acres and includes mostly single-tenant truck terminals, low-coverage assets or IOS maintenance facilities. The seller operated the assets under one of its real estate funds, after having acquired them between 2017 and 2022 as part of its strategy to purchase properties with growth potential in key industrial metros.

In the latest deal, Eastdil Secured Director Nick Murphy and Managing Director Brian Budnick worked on behalf of the seller.

The sale ended an active year for Brookfield Properties. The company entered the Canadian market with a 1.1 million-square-foot acquisition, and had a total deal volume in 2024 of $3.4 billion in North America alone. Today, Brookfield owns and operates a $26 billion worth industrial portfolio that spans 182 million square feet across five continents. Additionally, the company’s logistics development pipeline exceeds 90 million square feet.

Strong transaction activity

Multiple notable transactions closed last year in the IOS sector. Alterra IOS purchased a seven-property portfolio in a deal that closed in November. The 23-acre portfolio was fully leased and included properties in seven markets.

The joint venture between Dalfen Industrial and Centerbridge Partners also continued to expand its footprint in this sector. The companies picked up two East Coast properties in August, in two high barrier to entry metros. In May, the same partnership purchased five properties on the West Coast, in a deal valued at $26 million.

Triten Real Estate Partners and TPG Angelo Gordon also announced plans to expand their presence in the sector. The venture intends to acquire more than $1 billion in additional IOS properties over the upcoming five years.

The post Brookfield Sells IOS Portfolio for $277M appeared first on Commercial Property Executive.

Cushman & Wakefield brokered the sale and arranged the $93.8 million acquisition loan from institutional investors advised by J.P. Morgan Asset Management.

Broadway 101 Commerce Park’s sale has achieved multiple local milestones, such as being the biggest industrial transaction in Phoenix last year or the largest single deal for an industrial park in the Southeast Valley of Phoenix.

At the time of the sale, the industrial park was 98 percent leased to a total of 34 tenants. The roster includes Mitel, Stars Healthcare, Branded Bills, Accu-Tech, Factory Motor Parts and Evoqua Water Technologies, among others.

Built between 2005 and 2007, Broadway 101 Commerce Park encompasses 11 warehouse and industrial buildings spread on some 53 acres. The facilities feature 125 grade-level doors, 109 dock-high doors, ESFR fire sprinklers, insulated ceilings, climate control and parking spaces.

READ ALSO: Phoenix Industrial Development Remains Fast-Paced

Executive Vice Chair Will Strong, Director Michael Matchett and Senior Associate Molly Hunt from Cushman & Wakefield’s National Industrial Advisory Group – Mountain West worked on behalf of the seller. Executive Vice Chair Rob Rubano, Executive Managing Director Brian Share and Managing Director Joseph Lieske from the Equity, Debt & Structured Finance team arranged the financing.

Back in August, CIP acquired Tully Business Center, a small-bay, 143,221-square-foot industrial park in San Jose, Calif. Dollinger Properties sold the asset for $40 million.

Phoenix’s strong industrial scene

Located 2140-2360 West Broadway Road, the industrial park is in Phoenix’s Mesa submarket, within a 67.5-acre master-planned park. Broadway 101 Commerce Park is centrally located near the Sky Harbor Airport/Tempe area, providing access to Loop 101, Loop 202 and US-60 freeways, as well as proximity to the light rail.

Phoenix’s industrial market continues to thrive, with the industrial sales volume reaching nearly $2.2 billion in 2024 through October, according to a recent CommercialEdge report. The average price per square foot stood at $162, with more than 15 million square feet of industrial space changing hands.

The metro also led the nation in terms of industrial development, despite a slowdown in construction starts. At the end of October, metro Phoenix had approximately 24.7 million square feet of industrial space under construction.

The post CIP Real Estate Pays $168M for Phoenix Industrial Asset appeared first on Commercial Property Executive.

Glenstar Logistics has completed the first of five buildings at the $415 million, 290-acre Cherokee Commerce Center 85 in Gaffney, S.C. The speculative, cross-docked 550,520-square-foot building can be expanded to 1.3 million square feet.

Upon full buildout, the industrial park adjacent to Interstate 85 in upstate South Carolina’s Cherokee County industrial corridor will total up to 3.6 million square feet. Potential uses include warehousing and distribution, advanced manufacturing, food processing, assembly/light manufacturing and refrigeration/cold storage.

Glenstar Logistics, the industrial arm of Chicago-based Glenstar, is developing CCC-85 in partnership with Creek Lane Capital. The project was announced in the fall of 2022. In July 2023, the developers received the final approval for a tax incentive package from the Cherokee County Council.

READ ALSO: Industrial Settles After Supply Surge

The developer began vertical construction of the first building in August. CrossHarbor Capital Partners provided a $38.2 million construction loan in September 2023 for the first phase of the project.

The development team includes general contactor The Conlan Co., architecture firm Ware Malcomb and SeamonWhiteside as civil engineer.

A large South Carolina industrial park

The first building features 40-foot clear heights, 56-by-50-feet column spacing, 60-foot speed bays, up to 232 dock doors, four drive-in doors and flexible parking. The asset will be able to accommodate up to 200MW of power within three years.

The other four warehouses that will complete CCC-85 will range between 211,640 square feet and 1.7 million square feet, and will also feature 40-foot clear heights, 56-by-50-feet column spacing and 60-foot speed bays.

Located at the four-way Interstate 85/Highway 105 interchange, CCC-85 sits across I-85 from Boysen’s manufacturing plant, which supplies BMW’s manufacturing facility 31 miles away in Spartanburg, S.C. The park is also 35 miles from Inland Port Greer and some 50 miles from metro Charlotte, S.C. From CCC-85, tenants can reach more than 135 million consumers within a day’s drive, according to the developer.

Industrial momentum in Cherokee County

Vacancy in Cherokee County had decreased to 6.1 percent by the end of the third quarter of 2024, according to a Colliers industrial report. Colliers also noted that in-market tenants are beginning to trade older Class B and C buildings for Class A space.

There was an uptick in distribution and manufacturing users interested in leasing space in the new building, according to Brian Netzky, Glenstar Logistics managing principal. That came especially because of the propertyțs heavy power profile and water and sewer capacity. Netzky also said in prepared remarks that tenants have begun to make leasing commitments at a faster pace than earlier in 2024, and he expects that momentum to continue in 2025.

Recent Glenstar Logistics sale

In October, a joint venture between Glenstar Logistics and Columnar Investments sold Tri-County 75, an 818,000-square-foot industrial park in Fort Myers, Fla., to an affiliate of Walton Street Capital in a deal arranged by CBRE.

The developers had secured $97.5 million in financing from Square Mile Capital Management in 2022 for the four-building speculative park campus. At the time of the sale, the park was 95 percent leased.

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