There have been a number of questions in the commercial real estate circles asking if we will see cryptocurrencies (digital currency - what most of us call Bitcoin) used as a form of payment in the commercial real estate industry. Much of the opinions have been "yes, but not now". According to this article in today's Wall Street Journal, the answer is actually, "yes, in fact they are using it as we speak"! Limited...but being used nonetheless. Payment of rent, purchase of property. States beginning to use blockchain technology.
Interesting quick read! See attached WSJ article: Bitcoin is Creeping Into Real Estate Deals
Just returned from a short week in Chicago, site of the SIOR Fall World Conference. Just about 1,000 attendees and lots of opinions!
* Overwhelming opinion is this industrial real estate run has lots of legs left to it. In fact, at the risk of sounding overly-optimistic, most people don't see an end in sight (of course, isn't that the time you should start cashing out!!??).
*Nationally, vacancy rates are at an all-time low and rates continue to rise. Speculative construction in many markets is having a tough time keeping up with demand.
*E-Commerce continues to be the driver. Biggest challenge is to get closer to the customer (last mile). Imaginative ideas even include multi-level warehouses (Prologis - Seattle & San Francisco). Redevelopment of urban sites. Re-use of previously thought to be obsolete real estate.
* Lots of cash out there still. Investors chasing less product. Driving returns lower.
* Regionally? Still seeing a product shortage in high quality industrial real estate. Most of what is being built is just about spoken for (few exceptions). Bifurcated market however. Less-than-high grade space continues to struggle to be absorbed. Don't see that changing in the near future. Distribution center construction market continues (Trader Joe's/Bloomfield and recently announced 234,000 SF auto parts deal at New England Tradeport).
We'll keep you posted!
Good morning everyone! See link below re: a CT industrial market update I was asked to do for Northeast Real Estate Business - Quick snapshot of the local market. Enjoy!
CT's Tight Industrial Market May Limit Growth
Patrick McMahon, Director of Economic Development at the Town of Suffield, has recently accepted the CEO position at CT Main Street Center. Good for CT Main Street Center. Tough news for the Town of Suffield. Patrick is a great example of how important a good economic development officer is for a town. Great representative of its interests and assets. Good luck in your new venture Patrick!
See related article: CT Main Street Names Patrick McMahon New CEO
At a time when Connecticut has had its share of bad news, nice to see some good news coming from one of our major employers. UTC unveiled its Innovation Hub on Friday afternoon. A $60 million dollar investment into 185,000 SF of new and existing office and laboratory space. "Global innovation at UTC begins right here at the Research Center in East Hartford" said David Parekh, corporate vice president of research and UTRC director.
Thank you UTC!
See Hartford Business Journal article: $60M innovation hub debuts