‘Not-in-my-backyard’ mindset threatens warehouse growth

Attendees at Prologis Inc.’s investors day heard pretty much what they came to hear. That included the logistics warehousing giant’s assessment of the macro environment, plans to build facilities occupied solely by data centers, its efforts to expand solar power use, and a broadening of its customer value proposition, among other things.

What they may not have expected to hear were comments from Prologis (NYSE: PLD) President Dan Letter that it is becoming increasingly difficult to build...

https://www.freightwaves.com/news/not-in-my-backyard-mindset-threatens-warehouse-growth

Will there be logistics demand for all that dirt?

The co-founder and CEO of Zenith IOS, Ben Atkins, has an ambitious and a somewhat unorthodox goal for his company. “We want to be,” he said, “the Prologis of dirt.”

Given its massive size — more than 1 billion square feet of logistics warehousing across the globe — being known as the Prologis of anything is aspirational for most real estate developers. That’s especially true for Zenith, less than 3 years old and looking to redefine the industrial outdoor storage (IOS) industry, a legacy business...

https://www.freightwaves.com/news/will-there-be-logistics-demand-for-all-that-dirt

The slow climb of multistory warehouses

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Earlier this month, real estate services firm JLL Inc. published a report marking the fifth...

https://www.freightwaves.com/news/the-slow-climb-of-multistory-warehouses

JLL, Quiet Platforms pioneer flexible rent model, scale fulfillment network

In the first half of 2022, heightened e-commerce demand and limited warehouse supply were the prevailing trends.

Then, in October, Prologis further validated that narrative, reporting that occupancy tightened, more leases commenced, and utilization of space was at the 95th percentile historically during the third quarter. Currently, nationwide industrial vacancy rates are sitting at all-time lows.

All of that activity means tenants have been forced to pay more for space. As of October, Prologis...

https://www.freightwaves.com/news/jll-quiet-platforms-pioneer-flexible-rent-model-scale-fulfillment-network

Father Time taking toll on logistics warehouse supply

The unprecedented boom in logistics warehousing demand is now about a decade old. During most of the past 10 years, it was a safe bet that the aging of the industrial warehouse stock wasn’t considered a high priority. Stakeholders had their hands full just keeping up with demand for capacity that hit like a ton of bricks and has barely abated.

Yet the warehouse inventory hasn’t gotten any younger, and in some markets it is getting downright old. In a March report, real estate services giant JLL...

https://www.freightwaves.com/news/father-time-taking-toll-on-logistics-warehouse-supply

Red-hot 3PL: AOI Capital acquires RK Logistics

3PL RK Logistics acquired by AOI Capital

With e-commerce booming and warehouse space shrinking, 3PLs have become hot commodities. The latest is RK Logistics Group, which manages about 1 million square feet of warehousing and distribution capacity in the competitive California market.

On Friday, a group of investors led by Miami-based investment firm AOI Capital announced they have acquired RK Logistics Group. Terms were not disclosed.

“RK Logistics Group has a stellar reputation as a high-performance supply chain operator supporting...

https://www.freightwaves.com/news/red-hot-3pl-aoi-capital-acquires-rk-logistics

Warehouses will be a tough find through 2023

Industrial rents unlikely to cool anytime soon

The industrial real estate market will likely see low vacancies and high rents for at least another two years, according to a report from commercial real estate services firm JLL Inc.

On the demand side, companies are taking on larger inventory positions to avoid future supply shocks and stockouts, which have been prevalent throughout the pandemic. Further, e-commerce platforms require incremental inventories positioned closer to the end consumer in order to meet tight delivery schedules. In the...

https://www.freightwaves.com/news/warehouses-will-be-tough-to-find-through-2023

In logistics real estate, smaller is getting bigger

Ecommerce causes last-mile networks to creep closer to consumers (Photo: Shutterstock)

In the white-hot world of logistics real estate, small is the current big thing.

Facilities with less than 100,000 square feet accounted for more than half of logistics real estate leasing activity in the third quarter, according to data published Tuesday by real estate services giant JLL Inc. (NYSE:JLL). Demand was even more pronounced for facilities of between 10,000 and 50,000 square feet, according to the company. During the first nine months, about 2,400 leases were signed for the smaller...

https://www.freightwaves.com/news/in-logistics-real-estate-smaller-is-getting-bigger

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