• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » An Eye on the State of Industrial Real Estate

An Eye on the State of Industrial Real Estate

January 21, 2010
SupplyChainBrain

The bad news for providers of industrial real estate is a downward spiral in occupancy rates and rents. The good news? In part because financing has not been readily available, there has been little in the way of new construction, so the supply of space is "way, way down," Rakowich says. "That's the silver lining down the road." When demand returns, facilities won't be dirt-cheap.

And, in fact, demand actually does have a pulse, he says. ProLogis has some 475 million square feet of warehousing in 18 countries. Demand for space has increased among 3PL clients for one thing. "People want to reconfigure distribution and be more efficient."

And the drive for sustainable operations has resulted in an uptick in  "green" warehouse space. "Actually, there's been reasonably good demand there," Rakowich says. Customers are talking more about  their sustainable agendas, especially the larger companies.

Such buildings are good for clients' pocketbooks. For one thing, overall utility costs are lower than in more traditional space. Most customers would prefer to be in them, "and we want to get ahead of that curve."

There is a direct correlation between improving GDP rates and demand for space. With parts of Europe and Asia seeing GDP growth, the hunt for warehousing is on in those areas.

Space at end of life also promises a relatively better near term for industrial real estate firms, says Rakowich. Every year, the industry sees the U.S. lose 1 percent to 2 percent of its warehousing space due to natural obsolescence. In Western Europe and Japan, the figure ranges from 2 percent to 4 percent. That, coupled, with the recent downturn in new builds, will create a tremendous demand for efficient facilities once the economy picks up.

To view this video interview in its entirety, Click Here.

RELATED CONTENT

RELATED VIDEOS

Logistics Facility Location Planning Transportation & Distribution Business Strategy Alignment Global Supply Chain Management
KEYWORDS Business Strategy Alignment Facility Location & Network Design Global Supply Chain Management Logistics North America Supply Chain Analysis & Consulting Transportation & Distribution
SupplyChainBrain

Redwood Logistics Launches Sustainability Tool for Shippers

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A GIANT EXCAVATOR BEARING THE JOHN DEERE LOGO SITS IN A FIELD IN DAPPLED SUNLIGHT

    EVs Finally Land at North America’s Biggest Machinery Conference

    Technology
  • A ROW OF HOT AIR BALLOONS CONTAINS A ROCKET ZOOMING PAST THEM

    When Adopting New Tools for the Supply Chain, Don’t Forget Change Management

    Technology
  • TWO HANDS IN SHIRT CUFFS SHAKE AGAINST A BACKGROUND OF A US FLAG

    Podcast | Leaving China: Is ‘Friend-Shoring’ the Answer?

    Sourcing/Procurement/SRM
  • DEEPLY CRACKED EARTH UNDER A BLUE CLOUDY SKY

    It’s Time to Embed Climate Considerations Into Supply Chain Strategies

    Sourcing/Procurement/SRM
  • kristin-toth.jpg

    Watch: What Goes Around, Comes Around: Circularity in the Supply Chain

    Reverse Logistics

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing