Does anyone have to wait longer than two days for anything from anywhere to be delivered to his/her door these days? Pretty soon even two-day shipping will be too long to wait, thanks to same-day and one-day shipping options.
These same, one and two day shipping options and expectations have created phenomenal, exponential demand from companies needing space to house their goods. The closer that industrial building/warehouse space is to heavily populated urban markets the better for the companies and the better and faster for customers to get the goods they want.
The Urban Land Institute just released its “Emerging Trends in Real Estate” survey and in it, the Institute points to the perfect storm of strong employment numbers, rising consumer spending and e-commerce and third-party logistics growth all fueling high demand for industrial assets. Demand for residential assets goes hand in hand with the industrial assets.
Here are the Urban Land Institute’s top three places for real estate investors to consider buying and/or holding.
- The Bronx, Queens and Statin Island
- 76% professionals say it’s a good time to buy in these markets.
- 12% say it’s a good time to hold in these markets.
- Why? (Besides Amazon’s HQ2 in Long Island City)
- These markets are near millions of consumers who want fast delivery.
- Prices and rents are lower than surrounding markets, according to CPEX Real Estate report.
- Value has jumped in 2018 (pre-HQ2) up 59% – 77% in last year.
- 71% professionals say it’s a good time to buy in this market.
- 19% say it’s a good time to hold in this market.
- Rents are expected to increase in 2019 and beyond, according to Q3 2018 Cushman Wakefield report.
- 5M square feet is currently under construction.
- 68% professionals say it’s a good time to buy in this market.
- 18% say it’s a good time to hold in this market.
- Data centers and manufacturing are fueling industrial growth in this metro area, according to Q3 2018 Avison Young report.
- 4M square feet of industrial space currently under construction.
- 2018 – highest dollar volume EVER in industrial transactions in this metro.