Industrial Insights - January 2023
From Prologis's 7 Supply Chain Predictions for 2023
The report outlines significant shifts in warehouse development and logistics:
- U.S. warehouse development starts will reach a seven-year low despite rent growth exceeding 10% - Texas will become the leading state for net absorption, surpassing California due to development barriers - Mexico's near-shoring trend will drive demand to record levels along the border - India will rise to third place for development starts globally, behind the U.S. and China - Build-to-suit rents will reach unprecedented levels as market capitalization rates hit 5% - E-commerce leasing will rebound to become the second-strongest year on record - Sustainable warehouse demand will accelerate, with rooftop solar capacity doubling and EV truck charging exceeding 10 megawatts
Tenant Representation
The team successfully renewed a 91,116 square foot lease in Fullerton, California at 1400 Manhattan Avenue. The negotiation required exploring alternative locations, underwriting multi-building operations, and submitting multiple proposals before market conditions improved enough to secure favorable renewal terms.
Landlord Leasing
Broker valuations have increased significantly as investors reprice assets and pursue refinancing. The team assists asset managers with lease renewal strategies and monitors specific properties monthly.
Investment Sales
The firm is working with a family office deploying $100 million into Class A and B industrial properties nationwide, focusing on net-leased assets with minimum five-year lease terms.
Media & Resources
Books:
- "Industrial Intelligence" (available in audiobook, paperback, and Kindle formats)
- "Industrial Income" (publishing July 2023)
Podcast Series: featuring industry leaders discussing industrial real estate, cold storage development, and 2023 legislation