Monday, August 12, 2013

Marcus & Millichap Reports Slow but Steady Economic Gains Support Broad-Based Industrial Revitalization

Industrial complex, Columbus, OH

WALNUT CREEK, CA – Marcus & Millichap’s second quarter research shows that though economic growth has been modest so far this year, demand for industrial space has been supported by an expansion of the drivers that underpin the economy — distinguishing this year’s performance from the recent past.

IDI Distribution Center, Memphis, TN
Demand for big-box distribution locations has expanded beyond traditional tenants, such as third-party logistics services, freight forwarders and other trade-related activities, to include a growing cadre of manufacturers, e-commerce companies, fulfillment centers, and home goods and food suppliers.

In addition, the combination of easing credit conditions and low interest rates have spurred demand from small- to mid-sized manufacturing and high-tech firms, stabilizing industrial multi-tenant performance.

Multi-modal mega-distribution hubs, submarkets near key seaports, air cargo and railroad transit locations, and modern Class A warehouse facilities remain the locus of industrial demand.

Industrial building, Santa Fe Springs, CA
As a result, the recovery in many metros and product types, while improving, continues to lag gateway and inland port markets. Similarly, investors have focused acquisitions on core assets in primary markets.

 However, recent transaction trends reflect a notable uptick in tertiary markets where higher yields and stronger revenue growth opportunities have attracted investors.

For a complete copy of the company’s report and news release, please contact:

Gina Relva,
Public Relations Manager

(925) 953-1716

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