Growth has been the keyword over the last decade when it comes to the industrial construction market. Industrial real estate sales are projected to exceed growth from 2016, which would make the second largest jump in gain in the last ten years. Record growth (and the return of large portfolio deals which had been anemic in recent history) is attracting foreign investors and creating expansion.
The reason for such growth? At the top of the list is eCommerce giants which, in looking for homes to house their rapidly expanding business, are vying for limited large industrial space. Amazon is looking to place their new headquarters, an estimated 8 million square feet need, and cities are competing for the business. With companies like Amazon in the hunt, other large eCommerce businesses are following suit.
It’s not just headquarters and office space that companies are hungry to attain. There is a vital need, with the exponential growth of the eCommerce industry, to have strategically placed distribution centers that can keep up with the demand. At the top of the list of these cities that are meeting the needs of such growth is Houston which added 153 properties totaling over 32.5 million square feet of industrial real estate space. The location, business-friendly environment, and proximity to resources necessary to run large operations make it a top competitor with other markets. Phoenix and Dallas-Fort Worth round out the top three, cementing the Southwest of the country as a leader in the market search.
To see where other cities placed, and what markets had the most growth, please visit: