Ugly properties, it’s your turn to shine: Demand for US warehouse space is on the rise
Online retailers need the space to make fast deliveries
Industrial rents in U.S. cities are climbing as online retailers seek out warehouse space to meet increasing demands for fast delivery.
Amazon and other online retailers are driving up demand — and therefore rents — for warehouse space in urban areas throughout the U.S., the Wall Street Journal reported. Rents for U.S. industrial spaces reached $5.35 per square foot in the second quarter of 2017, jumping from $5.25 in the first quarter, according to new data from JLL.
”Consumer purchasing behavior and the rise of e-commerce have shifted in a way that is extremely beneficial for industrial real estate,” Phil Hawkins, chief executive of the real estate investment trust DCT Industrial Trust, said in a statement to the newspaper. “Proximity of warehouses is more important than ever, and we aim to own properties closest to transportation and consumers.”
San Francisco REIT Prologis recently purchased the ABC Carpet & Home building in the Bronx and plans to convert the property into a warehouse with asking rents in the low-$20s. This year, Prologis also bought two warehouses in Opa-locka, Florida. [WSJ] — Kathryn Brenzel