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Monday, January 9, 2017

Recent article from CoStar shows strong industrial real estate outlook in 2017 (warehouse/DC) - Lots of factors - Low interest rates, e-commerce and strong consumer spending - Report is consistent with our region - CT and Western MA had strong year in 2016 and we expect strong demand for quality space in 2017 - Issue won't be on the demand side rather the product/inventory side - Lack of speculative construction leaving the region short on Class A supply - Recent increase in Class A rents should provide developers with reasonable return (in spite of cost of construction) - Problem is, even if developers break ground today, the product coming on line will be too late for anticipated demand.

CoStar article: E-Commerce Driving Distribution Property Growth

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