Strong Industrial Outlook In 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