The industrial real estate sector is likely heading for slower growth, according to a forecast published by the Deloitte Center for Financial Services.
The sector, composed of warehouses, distribution centers, flex spaces, and other industrial buildings with storage facilities, has seen sustained demand over the past five years. But potential marketplace shifts including growing e-commerce demand, market oversupply, rising interest rates, and a higher cost of capital will likely mean slower growth, the report says.
While warehousing continues to be robust, the looming deceleration in demand growth is going to put pressure on owners to become more creative in how they use and buy industrial real estate, Deloitte says. More than 30% of U.S. warehouse buildings are more than 50 years old, and the average age of all warehouse properties is 34.
With the cost of capital rising and supply ballooning, retrofitting spaces, identifying new warehousing models, and developing smarter facilities will become necessary.
Related Stories
| Dec 13, 2012
Pima County, Ariz. officials say improved code enforcement scores will help lower insurance bills
Insurance Service Office, Inc. (ISO) recently analyzed building codes and enforcement and found that Pima County, Ariz., consistently outscored comparable jurisdictions in Arizona and the nation.
| Dec 13, 2012
D.C. aims to be a green leader with new building codes
The District of Columbia has released a revised set of building codes to make it a leader in green construction.
| Dec 7, 2012
Georgia court limits contractors’ ability to foreclose on liens
The Georgia Court of Appeals ruled in 182 Tenth, LLC v. Manhattan Construction Company that lien claimants such as contractors, subcontractors, and materialmen, may not foreclose on a lien that includes unpaid general condition costs.
| Dec 7, 2012
San Francisco real estate records will include ‘green labels’
Ecologically-sustainable building practices, or “green labels,” will now be included on official land records maintained by San Francisco.
| Dec 7, 2012
Tokyo’s Green Building Program has reduced power consumption by 20%
Tokyo city officials calculate that its Green Building Program reduced energy consumption by 20% since its inception, a statistic they identify as the reason the power stayed on during the 2011 earthquake.
| Dec 7, 2012
New flexible options make achieving LEED certification easier on projects outside the US
A new set of Global Alternative Compliance Paths, or Global ACPs, are now available for all commercial projects pursuing LEED green building certification using the 2009 versions of the rating systems.
| Nov 29, 2012
New York contractors say they will pay tax despite a court ruling that the tax is unconstitutional
The New York Building Congress says it will voluntarily pay a tax declared unconstitutional by the courts because, it says, the money is vital to maintaining the city’s transportation infrastructure.
| Nov 29, 2012
Storms like Sandy highlight the need for stricter codes, says insurance expert
Experts on insurance, weather, and catastrophe modeling say the role of climate change in Hurricane Sandy and future storms is unclear.
