Industrial Land at Premium as Users’ Needs Shift
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Demand for e-commerce fulfillment centers and new manufacturing facilities has shifted industrial space requirements from large properties to mid-sized buildings, already in short supply following the recession. The shift is contributing to higher prices for infill land parcels.
On a national basis, the average price for industrial land has moved up from $1.78 per sq. ft. in 2014 to $2.23 per sq. ft. in the first quarter of this year, says Geoff Kasselman, executive managing director with commercial real estate services firm Newmark Grubb Knight Frank. He notes that land is clearly on everyone’s shopping list.
“All the demand drivers are in place for higher land prices,” Kasselman says. “We’ve got the lowest vacancy since 2001, rents are up and absorption is through the roof. Development can’t catch up.”…
Industrial Land at Premium as Users’ Needs Shift
