What you need to know to capitalize on the industrial sector’s expansion.
Today, the industrial real estate market remains one of the strongest and fastest growing sectors in the commercial real estate industry. As the success of the industrial market is projected to continue well into 2019, now is an ideal time to invest in and capitalize on the sector’s record numbers. As your trusted commercial realty advisors, we at CCRA have identified a couple of key points that will help you stay on top of the ever-expanding industrial market. Here’s what you need to know about the current state of the industrial sector.
1) The Market Shows No Signs of Slowing
Currently, industrial spaces are enjoying historically low vacancy rates and record-breaking prices. Despite a major surge in development and an estimated 64 million square feet of new space entering the market, experts predict that the rental rates in the industrial sector will continue to rise as demand continues to grow.
2) The Emergence of Secondary Markets
As urban markets run out of distribution space and prices rise in these areas, investors are starting to look at secondary markets. While places like San Diego, Phoenix, and Las Vegas do not have a large enough industrial base to be considered primary markets, favorable demographics and space limitations are making these locations popular among new investors. By targeting secondary market spaces, investors can actually compete with nearby primary markets.
3) The Shift in Tenant Needs
Tenant needs are also changing in response to the shifting real estate market. While many industrial tenants have already leased big-box warehouses, the increased interest in offering same-day delivery has resulted in a need for smaller last-mile warehouses. This puts smaller industrial spaces that are located close to large, urban populations in high demand.
While everyone wants to capitalize on the industrial market’s rapid growth, only the most informed landlords can truly compete. This is why it’s so important to have a team of trusted commercial realty advisors on your side. For assistance with all of your commercial and industrial real estate needs, contact the experts at California Commercial Realty Advisors, Inc. to get started today.
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