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On the other end of the spectrum, micro-fulfillment centers are also gaining momentum.
Capital sources have become more accepting of flex tenancies under certain circumstances.
Even as construction ramps up, demand continues, driven in part by the ongoing need for vaccines for COVID-19 and other viruses.
Tenants whose multi-year leases are expiring are now facing rents averaging 25% higher as they look to renew.
The best office candidates for industrial conversion tend to be older suburban assets.
The most popular size segment for industrial leases in the third quarter was the 10,000 to 49,000 square foot range.
E-commerce sales fell off to under 10% since restrictions began lifting across the US.
The activity comes amidst conflicting data on how many people are actually returning to offices across Manhattan.
The national median rent in November was $1,312 this month, still $117 greater than where Apartment List economists predict it would have been had pre-pandemic trends continued.
There is a projected 855 million square feet of absorption and new supply of industrial properties at 932 million square feet expected in 2022.