CRE_December_2021

Industrial Real Estate Report: How E-Commerce & Global Shipping Defined 2021

adapt to online shopping, which required additional sorting and ful- fillment centers. The result has been a boon of massive industrial properties that are being developed with e-com- merce in mind, as evidenced by a CommercialSearch study analyzing the largest industrial properties completed in the first half of 2021: The study found that the three largest completions were all devel- oped for e-commerce and tech giant Amazon—while also being signifi - cantly larger than the next-biggest new properties. Specifically, the larg - est industrial completion in the first half of the year—Amazon’s Logisti- Center in Wilmington, DE, developed by Dermody Properties—spans more

by Lucian Alixandrescu

E conomic downturns, like the one caused by the pandemic, have ripple effects that are felt at every level of the economy—and the real estate market was no exception to this rule. The effects of work-from- home mandates and reduced con- sumer spending were felt in commer- cial real estate, though some asset classes fared better than others. Notably, industrial real estate didn’t see the same slowdown as other areas of commercial real estate. In this case, the primary cause was the demand for warehousing, cold storage and flex space, which was generated by e-commerce—a trend that was already picking up steam prior to the pandemic and was then propelled into the limelight by COVID-19. Now, with factory activity gradually picking up and even higher demand for global shipping, supply chain logistics are more important than ever in the global economy, and industrial space—especially in port markets—is an essential link. With that in mind, below are some highlights from the industrial real estate market this year, as well as a look at the Q4 industrial pipeline. THREE 3MSF WAREHOUSES DEVELOPED FOR AMAZON IN 1ST HALF OF 2021 Online shopping truly entered the mainstream during the pandemic, as quarantines and stay-at-home

orders meant that consumers became accustomed to having their orders delivered to their homes or picked up curbside. Consequently, online retail giants such as Amazon saw spikes in demand, and brick- and-mortar retailers also had to

The Largest Industrial Properties Completed in First Half of 2021

MARKET

PROPERTY NAME

LOCATION COMPLETION SQUARE FOOTAGE OWNER

WILMINGTON, DE

PHILADELPHIA LOGISTICENTER AT I-95 WILMINGTON

JUNE

3,833,950 DERMODY PROPERTIES

6060 GOLDEN BEAR GATEWAY

MT. JULIET, TN

NASHVILLE

JUNE

3,600,000 AMAZON

RICHMOND, TX

HOUSTON

10507 HARLEM ROAD

JUNE

3,402,028 AMAZON

LOCKBOURNE, OH

COLUMBUS

THE HUB - BUILDING 6

FEBRUARY

1,590,472 XEBEC REALTY PARTNERS

MEDLINE GRAYSLAKE DISTRIBUTION CENTER

GRAYSLAKE, IL

CHICAGO

MAY

1,445,396 MEDLINE

CHICAGO, IL

CHICAGO

EXCHANGE 55

JUNE

1,326,566 HILCO REAL ESTATE

ELWOOD LOGISTICS CENTER

GOODYEAR, AZ

PHOENIX

MARCH

1,302,434 TRATT PROPERTIES

HAWKS PRAIRIE LOGISTICS CENTER· BUILDING 1

LACEY, WA

SEATTLE

MARCH

1,287,510 NORTHPOINT DEVELOPMENT

70 EAST LOGISTICS CENTERON

PATASKALA, OH

COLUMBUS

FEBRUARY

1,232,149 STAG INDUSTRIAL

CHICAGO WEST BUSINESS PARK - 801 EAST GURLER ROAD

DEKALB, IL

CHICAGO

JUNE

1,222,400 ELMTREE FUNDS

Data provided by Commercial Edge

10 : : COMMERC IAL REV I EW

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