‘Industrial’ Archive

Houston: More Than Energy

Southeast Texas, specifically the Houston-Baytown-Sugar Land 10-county region, has been one of the most consistently productive and growing metropolitan areas in the country for several years. Since the end of 2011, year-over year (YOY) job growth has remained above 3.0% (often exceeding 4.0%), and ended 2013 with an annual increase of 82,000 jobs. This accounted [...]

U.S. Employment Update: January Jumble

U.S. employment growth remained weak in January 2014 as the economy added only 113,000 jobs, the second-smallest increase in the past 18 months. Only December 2013 experienced slower employment growth when just 75,000 jobs were added. This back-to-back weakness follows six months when the average gain was slightly more than 200,000 per month, suggesting that [...]

Increased development in the industrial sector – E-commerce is a huge driver for big-box space.

The U.S. industrial market continued to show momentum with strong leasing velocity and absorption, as well as construction levels that have already surpassed last year’s total. The overall vacancy rate fell to 8.2% in the third quarter, 300 bps below its recessionary peak in the first quarter of 2010. The U.S. industrial sector has now [...]

What’s the value in that?

The sluggish recovery lingers, and the new standard for most commercial real estate investments is lower returns.  Still, compared to stocks, bonds or cash, commercial real estate remains an attractive investment. RERC’s latest survey reports that ,on a scale of 1 to 10 (with 10 being the highest), commercial real estate scored a 6.7, the [...]

Prices at the Pump – Do They Impact Industrial Real Estate Demand?

The short answer is yes, they impact the momentum of activity surrounding industrial property, particularly by logistics firms.   Driving the demand for warehouse/distribution space, specifically big box, 30’ and greater clear height product, is the need to accommodate movement of goods where costs associated are as reduced as possible.  For transport, this means a tighter [...]

US Consumers May Finally Be Ready to Spend Again

The Current Conditions component of the Index of Consumer Sentiment is one of the better indicators of consumer spending. It is suggesting that consumers feel wealthier and better off in general today than they have in many years…If they begin to increase their spending more rapidly, it will boost the entire US and global economy.

U.S. Industrial Sector Outlook

Can a silver lining be found within the sputtering U.S. economy?  After showing tepid positive momentum, growing at an annual rate of 2.5% in the second half of 2011 and 1.9% in the first quarter, the U.S. economy has waned.  Now added to the uncertainty of the European debt crisis and anemic U.S. job growth [...]

Transportation: Recession and Recovery

This latest recession took an especially large toll on the U.S. Industrial markets. While the overall economy lagged with a 3-4% contraction, the Industrial Production Index (production excluding technology) showed a peak to trough drop of 18%. This monumental drop in the industrial markets has had a drastic effect across all transportation sectors and modes. [...]

Rounding Into Shape

economic trends are looking up for the Us commercial real estate industry.

Where Has All the Development Gone?

Construction activity has always been a good benchmark of the industrial sector’s strength. However, with the extended lag time between concept and completion, it may be better viewed as a confirmation of where the industry has been over the last 12 to 18 months. With that in mind, it should come to no surprise that [...]