2021 Remains an Unbalanced Industrial Market

2021 Remains an Unbalanced Industrial Market

The industrial property business has grown from a real estate niche serving mostly large corporations and owner/users to a favored investment of large institutions. The rise coincided with the great manufacturing upheaval of shuttered plants as companies shifted production offshore. Goods return in containerized shipments and begat the new industry of logistics. The result was increased liquidity of both goods and capital. A situation that is ideal for warehouse development and investment. Today’s industrial marketplace is made up of global and national 3pls, shipping companies, e-commerce, and on the capital side, Industrial REITS, large investment funds, and a handful of developers. The Covid Supply Chain phenomena and an increase in tariffs has compounded an already unbalanced space market to acute levels
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What I Learned From Attending MIT’s World Real Estate Forum 2020

What I Learned From Attending MIT’s World Real Estate Forum 2020

This year’s Forum was held virtually with presenters and participants from Asia, Europe, and the United States. There were a wide range of future-focused topics that came at the right time.  The Forum opened many new doors for exploration and research. My favorite sessions addressed ESG, Wellness, New Cities, Pricing Metrics, and Virtual Worlds.
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Commercial Mortgages Are On The Way Up

Commercial Mortgages Are On The Way Up

Many have already seen charts like this one showing a big drop at the end of 2007. It explains the past four years of weak sales. The small uptick demonstrates the recent increase of deals. Since this is 2011 Q3 data, (but released earlier this month), I expect to see more improvements. The same indicators are alive in the market. A long way from peak conditions but in the right direction.

Global Manufacturing And Los Angeles

Global Manufacturing And Los Angeles

More and more, there is an element of global manufacturing that I call “shelled out” production. There are no signs on the building. There is no one in the office. The workers either pretend or truly can not speak English. The manufacturing is composed of sub-assembly and contract piece work. There is no one in charge and the workers don’t know where their goods will go. As soon as the customer changes its allegiance to a slightly lower cost provider, the entire operation can fold. Our manufacturing system is largely devolving to the manufactured part and who can make it the best and ship it the fastest. There is virtually no other measure.
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