ATLANTA—E-commerce is driving demand for warehouse and logistics facilities around the nation's largest ports. But that's not the only driver.
GlobeSt.com caught up with Frank Giantomasi, member of Chiesa Shahinian & Giantomasi PC's Real Estate, Development and Land Use Group, to get his insights into the industrial overflow in part two of this exclusive interview. You can still read part one: 'They Know It's Time to Put Their Money Up.
GlobeSt.com: Are you seeing a lot of upgrade and renovation or expansion work on existing industrial facilities around ports?
Giantomasi: I can't say I'm seeing a lot of upgrades or renovations. What I am seeing is people locking land into longer-term leases. They want to fix prices now, because rents have been consistently going up.
Developers are getting rents per square foot that almost puts it on par with residential. I've actually had some developers say they're starting to contemplate replacing other commercial buildings with warehouses, because their returns will suffer very little.
GlobeSt.com: Could potential restrictions on international trade throw a wrench into the distribution segment's engine?
Giantomasi: Since this is a premier port in America, anything that would slow down the rate of commerce will slow down the rate of occupancy and the demand for this location. I do think that demand is high enough for growth and will continue regardless of any restrictions.
GlobeSt.com: Any other thoughts?
Giantomasi: Another thing driving demand around the port is our international trade partners, who are also occupying commercial buildings and establishing greater footholds here than before. It's not just the receipt of more international cargo, but the establishment of international businesses with offices and employees.
(How does Savannah's port impact Atlanta's metro? Get one take).
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