Uncharted territory - Red hot industrial real estate market has hit supply and demand highs as never seen-before, but where does it go from here?
Buildings are being leased and sold at a rate I've never seen in my 30 years in the business. I advise my clients about the new reality: You need to â€œpay up" to be near the Port or go south if you want to find any better deals or availability. Right now, it seems like this market will not end, but when will the music stop? Â
Are we headed for an industrial real estate bubble?
What will our undoing be this time? The residential real estate market doesn't seem the likely culprit. Interest rates, lack of consumer confidence or perhaps landlords finally raising prices too high to permit any more growth? What ever it might be, some day the music will stop, and those businesses which have done their homework and put together sound business plans will survive. That said, when that day occurs, we will see discount sublease space flooding the market like we have never seen before. And that may be the beginning of a reversal in the market.
This year there is no end in sight to this accelerating momentum of demand. But what will 2018 bring? We will just have to wait and see. - Gregory Irving