Getting in the Heads of Industrial Tenants


Getting in the Heads of Industrial Tenants
Factors like greater access to power and EV infrastructure are increasingly important for almost all companies. An excess of supply in some industrial markets has led to more rentable options and more favorable leasing terms for tenants. With new construction starts taking a more than 70 percent dive since early 2022, however, according to a 2023 Savills report, demand is likely to quickly outpace new deliveries. Until then, tenants have their pick of spaces and landlords. “Looking ahead, 2024 is shaping up to be a year of rebuilding,” Mark Russo, senior director, head of industrial research, Savills, told Commercial Property Executive. “Lately, the market’s been swinging more in favor of tenants, mostly thanks to a surge in new development. But don’t expect that to stick around forever.” Location, transportation access and available labor are key for all tenants. Beyond that, wishlists will vary depending on what the company makes or distributes. But still, trends can be observed. “It’s a very nuanced picture market by market but overall demand for industrial product remains generally strong,” Mason Waite, managing director of asset management, BKM Capital Partners, said... ...more RSK: Location, zoning, power, transportation, workforce and more. Good read.
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Factors like greater access to power and EV infrastructure are increasingly important for almost all companies.

An excess of supply in some industrial markets has led to more rentable options and more favorable leasing terms for tenants. With new construction starts taking a more than 70 percent dive since early 2022, however, according to a 2023 Savills report, demand is likely to quickly outpace new deliveries. Until then, tenants have their pick of spaces and landlords.

“Looking ahead, 2024 is shaping up to be a year of rebuilding,” Mark Russo, senior director, head of industrial research, Savills, told Commercial Property Executive. “Lately, the market’s been swinging more in favor of tenants, mostly thanks to a surge in new development. But don’t expect that to stick around forever.”

Location, transportation access and available labor are key for all tenants. Beyond that, wishlists will vary depending on what the company makes or distributes. But still, trends can be observed.

“It’s a very nuanced picture market by market but overall demand for industrial product remains generally strong,” Mason Waite, managing director of asset management, BKM Capital Partners, said...

...more

Getting in the Heads of Industrial Tenants

Factors like greater access to power and EV infrastructure are increasingly important for almost all companies.

Share this article on you social outlets