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| 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.
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| 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.
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| 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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