Toyota's plan to close its Torrance headquarters and ship 3,000 jobs to a Dallas suburb has triggered a new round of hand-wringing among those who see business-friendly Texas gaining at the expense of regulation-choked California.
Companies that successfully rode out the recession are now looking for better times ahead, but they should be cautious, says a report from Jones Lang LaSalle, which identified five operational issues that companies should remain focused on as the economy continues to strengthen.
Industrial real estate is poised for a spike in demand, development and delivery according to research by Jones Lang LaSalle. Industrial markets nationwide have been recovering for more than four full years, with 15 consecutive quarters of positive net absorption. Last year marked a five-year high, with 168 million square feet of net absorption, and, with current forecasts, this figure could top 180 million square feet in 2014. So, what's behind this momentum?
Auto parts supplier ADVICS Manufacturing Ohio Inc. of Lebanon plans to invest $100m in a building expansion and new equipment, the company's single largest investment in its 25-year history in Warren County, company officials tell this newspaper.
Demand for U.S. industrial distribution centers, larger than 300,000 square feet, is high and rising, according to real estate services firm Jones Lang LaSalle's first "Big Box Velocity Index". Improving economic conditions, the continuing growth of e-commerce and a deep bench of tenants seeking space have all created this highly competitive fight for industrial and warehousing space. As a result, there is 96.7 million square feet of industrial construction under way, with nearly half speculative, with an average building size of 360,000 square feet.
It is not enough for global businesses to know that in coming years China's economy will move away from an over-reliance on investment and toward more consumption. They also must know that the potential costs and benefits of rebalancing the world's second-largest economy are high and will affect industries not only domestically but also around the world.
Just as countries vie with one another to be agreeable places in which to do business by having congenial tax rates, U.S, states have come to realize that in order to attract jobs and diversify revenue, they too, must adjust their tax structure accordingly.
Long a go-to for corporate cost cutting, corporate real estate has turned a corner and is becoming a solid productivity driver, with CEOs starting to reap the rewards of enhanced revenue, shareholder value and employee performance. A new Jones Lang LaSalle report reveals that companies that view real estate assets singularly as a source of short-term cost reduction are actually incurring hidden long-term financial and operational risks.
Low U.S. interest rates, positive economic indicators and an increasing demand for prime, well-located logistics property are some of the elements bringing focus to U.S. industrial assets such as warehouses and distribution centers, according to Tim O'Rourke, executive vice president at Jones Lang LaSalle.
