The industrial real estate world is preparing for the “new normal” in 2011.
We are entering an environment in which the movers of freight are increasingly cost conscious and at the same time are facing green pressures, rising fuel prices and unknown inventory levels. Responding to these sometimes conflicting demands will require great innovation and flexibility from the real estate development community as well as an easing of credit from the lending community.
Although we do not expect to see much organic growth in demand for industrial real estate, we are seeing demand for more efficient facilities and with better transportation-centric locations.
As a whole, the transportation and logistics industry has yet to see any signs that the federal government intends to issue, or fund, a comprehensive plan to rebuild and expand our nation’s infrastructure.
I believe the private sector can, and will, step into this void. It would be appropriate for our civic leaders to welcome and capitalize on the privatization endeavors that are currently in play to ensure that the countries’ port, rail and highway systems are in a suitable condition not only to allow for economic growth but to encourage the same.