Industrial Demand Strengthens, Capitalizes on Int’l Trade Flow

CALABASAS, CA-An eventful 2011 proved to be a pivotal year as the economy weathered setbacks and risks of a double-dip recession, according to locally based Marcus & Millichap Real Estate Investment Services, which exclusively shared its industrial research market report with GlobeSt.com. “The US continued to capitalize on the strength of international trade flow, business investment, technology and manufacturing, later aided in large measure by the energy sector and the resurgence in consumer demand,” says Alan Pontius, managing director of the national office and industrial properties group of Marcus & Millichap

According to Pontius, the key themes that featured prominently in 2010 continued into 2011 with expanding international trade volumes, logistics operations, and inventory rebuilding supporting demand for big-box warehouse space in distribution hubs located near key seaports, air cargo locations and railroad transit hubs. More than half of total net absorption occurred in five mega-distribution centers, which included the Inland Empire, Dallas/Ft. Worth, Detroit, Chicago and Atlanta.