Industrial Investor Interest Shifts to Secondary Markets: Amazon’s Rapid Growth in Northeast Markets & More

Leading commercial real estate and public sector executives convened for the The Third Annual Northeast Industrial Real Estate Summit, the recent installment in The NJ Commercial Real Estate Series, held on June 10 in Jersey City. David B. Wolfe, Member, Skoloff & Wolfe, P.C Demand dynamics for industrial real estate are changing rapidly in New Jersey, Pennsylvania and other northeast regions due mostly to the rapid growth of “Amazon Prime” and other online consumer-friendly retailers. Industrial developers and landlords are responding to the demands of these online retailers, specifically the speed-to-market challenge, the evolving warehouse footprint, employment trends and patterns, and the overall impact on the region’s transit system. How is the e-commerce fulfillment center different from the traditional industrial asset in terms of the type of footprint required, number of employees required to execute online sales, and the overall impact on transit in terms of number of trucks and delivery methods? Adela Smith, Senior Research Manager – Northern New Jersey, CoStar Group Expert speakers, representing the most active industrial real estate development and investment firms discussed important trends, patterns, opportunities and challenges, including: analysis of large portfolio sales around the nation; a potential industrial real estate market oversupply, the role of institutional investors in the national marketplace,  new financing sources, and opportunities in burgeoning markets, such as Pennsylvania. More than 300 attended who represented 154 of the most active industrial real estate developers, investors, capital sources and service providers.…