A month ago, tedmag.com offered a look at the “slow escape from the doldrums” in the office market, via data and analysis from Marcus & Millichap. This report is based on another Marcus & Millichap product—the 2012 industrial report. To download the free report, register on the site, then click Research Reports.
For electrical distributors—even the great big ones—virtually all business is local. As seen in the next two graphics, there is good news for some.
Above: Marcus & Millichap’s commentary noted rising vacancies in Harrisburg, Pa. The term “completions” is “delivery” of a finished industrial building.
“Net absorption” is arrived at by subtracting new industrial square footage coming on the market (via construction or someone leaving a space) from total leasing of industrial space. Obviously, there’s an appetite in the places above.
People hired means more space needed
Industrial space is not fungible. Neither, if you think about it, is most real estate. So, where is growth expected (and not expected) in 2012, in terms of hiring? Answers:
Some of that is good or bad news for you, depending on where you live and work. But it’s not all directly related to industrial space vacancy rates—although, again, Detroit ranks high on the “lowest” hiring and “highest” empty space graphics.
Of course, Marcus & Millichap had to take a look at the national scene. If you were feeling good after looking through what’s above, you might not want to look at the next graphic.
Construction of industrial properties, of course, is not a bad thing for electrical distributors. According to Marcus & Millichap, “Speculative and build-to-suit development will rise, but remain limited. Five markets, Harrisburg, Riverside-San Bernardino, Chicago, Cincinnati and Houston, will comprise nearly one-quarter of new supply in 2012. The lack of new construction can disadvantage and impede a stronger recovery in some mature industrial markets due to a high degree of functional obsolescence in existing stock.”
Lest you think what’s above has exhausted what the Marcus & Millichap report has to offer, it’s actually a tiny fraction of the information available in the full report.
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