Best Markets for Industrial Real Estate
If you’re thinking of investing in industrial real estate, check out the following markets as suggested to the National Real Estate Investors by Colliers International’s national director of the U.S. Industrial Group, Dwight Hotchkiss, to get an insight of where you’ll maximize earnings.
Seattle
If you’re living in Washington and you’re inclined to invest in industrial real estate, drop by Seattle, one of the fastest growing markets for industrial facilities. The vacancy rate in the Seattle/Puget Sound alone is impressive, at it has dropped 30 basis points in the first quarter of this year.
What D. Hotchkiss has to say: “Seattle has become a growing market that has seen greater interest in new development and investment from institutional clients.”
South Florida
There’s more to life than luxury condos and waterfront estates in South Florida. The industrial vacancy rate in this region is doing quite well. Take Miami, for example, with vacancy rates crashing down 30 basis points from the end of 2014 to the first quarter of this year. West Palm Beach, on the other hand, has a 5.9 percent vacancy rate.
What D. Hotchkiss has to say: “A number of notable investments have occurred in this region as a result of the explosion of business with LATAM.”
Northern California
San Francisco Peninsula’s vacancy rate will wow industrial real estate investors: it’s now only at 2.5 percent since it dropped 50 basis points in the last quarter of 2014. The same happened in San Jose, with a vacancy rate of 6.8 percent.
What D. Hotchkiss has to say: “The Central Valley, in particular, has become an area to watch… The region has seen a great increase in user interest and institutional investment.”
Chicago
Chi-town has always been a market to check out for institutional investments. Vacancy rate in the city averaged at 7.6 percent in the first quarter of this year, which represents a 10-basis point drop from the last quarter of 2014.
What D. Hotchkiss has to say: “Chicago continues to be a noteworthy market as it’s a key logistics center in the U.S. for trains coming from West Coast.”
For more information on the best markets for industrial real estate, log on to http://nreionline.com/industrial/8-best-markets-industrial-real-estate#slide-0-field_images-1785001.
