Yardi Matrix report details industrial sector's strength

A new market analysis compiled by Yardi^® Matrix reports that the industrial sector of the U.S. economy is performing solidly. Warehouse and distribution assets posted double-digit total returns, record low vacancy rates and all-time high rents in 2017 and are on track for an even stronger year in 2018, according to the report.

The report, titled "Hitting Its Stride," details how rising e-commerce sales and online retailers' focus on moving closer to customers have made warehouse space popular with both investors and tenants.

Biopharmaceutical companies, whose growth potential and long-term returns have drawn increasing investment attention, are seeking new locations away from such traditional centers as Boston, San Francisco and Seattle. Meanwhile, rising imports, expanded Panama Canal capacity and larger cargo ships have driven up demand for industrial space at U.S. seaports. These and other factors "prompted a number of architects to design [warehouses] upward instead of outward," the report says, and inspired new designs to accommodate direct consumer delivery, refrigeration, vertical development and sustainability.

The report, which can be downloaded here, also includes a Q&A with Jim Connor, chairman and CEO of industrial asset owner and operator Duke Realty Corp.

Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.

Industry Research | Jun 15, 2023

Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield

Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.

Contractors | Jun 13, 2023

The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023

Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.

Supply-chain snags are among the factors delaying construction.

Industry Research | Jun 13, 2023

Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility

The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.

Skanska USA's mental health trainees are identified by a Green Sticker

| Jun 5, 2023

Communication is the key to AEC firms’ mental health programs and training

The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.

Contractors | May 24, 2023

The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023

Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.

Multifamily Housing | May 23, 2023

One out of three office buildings in largest U.S. cities are suitable for residential conversion

Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.