Your Commercial Real Estate Source in the San Francisco Bay Area
Although CushWake is a competitor, I posted this because it’s an interesting take on where industrial is headed. The good news for the Bay Area market is that we are so heavily entrenched in technology, that the drivers for both benefit the local economy and industrial real estate investors in particular. Although Class A Industrial space is very limited in the Bay Area, there have been recent trends showing a variety of reconstruction projects to address these demands for higher clear height, better staging, and higher sprinkler ratings.
Unprecedented growth in technology and demand will force wholesale changes in the retail, industrial and logistics real estate sectors, according to a new “white paper” from Cushman & Wakefield.
As the global economy recovers, pent up demand “will result in significant growth in global trade,” the consultancy reports. A return to a growth rate of 9.5 percent a year would result in the volume of global trade reaching $45 trillion by 2021, compared to just $6.5 trillion in 2001 when China joined the World Trade Organization.
A few global factoids offered by Cushman & Wakefield:
To handle the fast-growing needs for online shopping, mobile technology and changes in consumer spending patterns will demand “flexibility and diversity, collaboration, automation, technology – and a keen balance of scale and scope, most likely through consolidation and vertical integration.”
“Seismic changes in retail requirements are putting new pressures on shippers who are expanding to developing economies while concurrently struggling to adapt to the challenges of high-demand retailing in increasingly dense cities,” said John Morris, Cushman & Wakefield’s industrial services lead for the Americas.
An excerpt from the report:
Read entire World Property Channel article here.