In a new video recently featured in GlobeStreet.com, HSA Commercial Real Estate Vice Chairman and CEO Bob Smietana discusses what trends to expect in industrial real estate in 2018.
As a result of changing technology and the evolving needs of transportation and logistics firms, Bob says that most of the absorption occurring over the last few years has been in the newer, Class-A buildings. Specifically, industrial tenants are looking for taller clear height buildings that can accommodate modern racking systems and even offer mezzanine potential for automated picking and packing. For example, Bob notes an industrial facility built 20 years ago with 24-foot clear heights may have once been considered tall. Today, newer distribution centers – such as the 262,758-square-foot warehouse building recently announced by HSA Commercial near the Indianapolis International Airport in Plainfield, Ind. – are more likely to attract tenant interest because of the taller 32-foot clear heights.
As one of the most active development firms in the Midwest, HSA Commercial completed $100 million dollars of industrial development in 2017 in four key markets: Indianapolis, Nashville, Southeast Wisconsin and Chicago. In Nashville, HSA Commercial completed the 652,000-square-foot Commerce Farms V distribution center development last year, and the spec building was fully leased just four months after construction was completed. All indications are that the new developments are only keeping up with the necessary demand in these markets, and Bob expects to see continued growth in 2018.
With the economy remaining strong amid a stable interest rate environment, 2018 is shaping up to a busy year at HSA Commercial. Stay tuned for announcements about exciting new industrial developments and leasing activity throughout the Midwest.
To watch the entire video interview with Bob Smietana, please visit our YouTube page: https://youtu.be/4uwFPBH7VMI