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| Michael Bull |
ATLANTA, GA (Feb. 4, 2013) – Buoyed by a slowly
strengthening economy, the U.S. industrial sector experienced noticeable improvement
last year and could take another significant step forward in 2013.
That was the
consensus of a panel of experts on the most recent episode of the “Commercial
Real Estate Show” radio program, hosted by Michael Bull of Bull Realty.
The episode took an enlightening look at the sector, examining vacancy rates,
investment sales, and the factors that could help or hinder industrial
properties in the months ahead.
 |
| Ryan Severino |
The national vacancy
rate for the warehouse/distribution subsector dropped about 80 basis points in
2012 to end the year at 12.3 percent, said Ryan Severino, senior
economist for Reis. Asking and effective rents for the properties both grew
approximately 2 percent last year.
The flex/R&D
subsector finished last year with a 13.9 percent vacancy rate, a
120-basis-point decline from 12 months earlier, Severino added. Asking and
effective rents both increased by about 1 percent in 2012.
“Industrial had a
pretty good year, all things considered,” Severino said.
 |
| Larry Callahan |
Looking ahead to
2013, Severino said growing e-commerce sales and an improving home market could
increase demand for the warehouses and distribution centers that store and ship
related products to consumers.
“On the other hand, a slowing of global trade triggered by
European economic woes and any future contraction in the U.S. economy could
harm the sector, he added.“ But as long as we’re in a slow, stable growth
environment, I think there should be good, if not spectacular, times ahead for
the industrial market,” Severino concluded.
Developer Larry
Callahan, CEO of Pattillo Industrial Real Estate, said big-box distribution
centers 300,000 square feet or larger areexperiencing the most tenant demand
among industrial properties. The industrial sector also has improved enough
that significant spec construction could be on the horizon, he added.
 |
| Summey Orr |
“The rental rates
are starting to move up, and [spec development] is starting to make more
sense,” Callahan said. “Some is actually happening in the hotter and tighter
markets, like some places in Texas and California.”
The market for flex/R&D buildings 300,000 square feet or
smaller – the kind of facilities traditionally occupied by small,
entrepreneurial firms – is still relatively flaccid, Callahan added.
Commercial real
estate attorney Summey Orr, managing partner of Hartman Simons, said
corporations are growing more confident about theirprospects and about adding
warehouse and distribution space.
“Towards the end of
2012, you were seeing [corporate real estate managers] going to their bosses
and saying, ‘Hey, we’ve been bursting at the seams for two and three years,’”
Orr said. “‘It’s time to get more space.’”
“I think we’re going
to see more of that in 2013 and certainly more of that in 2014,” Orr added.
The entire episode
on theU.S. industrial market is available for download at
www.CREshow.com.
The next “Commercial
Real Estate Show” will be available Feb. 7 and will examine the U.S.
multifamily market.
For a complete
copy of the company’s news release, please contact:
Stephen Ursery
The Wilbert Group
Office: (404) 965-5026
Cell: (404) 405-2354
