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Q&A on DFW Industrial with Bradford Commercial’s Joe Santaularia

In one of the nation’s largest and busiest industrial markets, the Dallas-Fort Worth metro area, it’s not quite business as usual given the uncertain economic outlook brought on COVID-19 and efforts to control the spread of the virus. Connect Media asked Joe Santaularia, first VP with Bradford Commercial Real Estate/CORFAC International, for an update.

Q: What are tenants/users looking for in the Dallas-Fort Worth industrial market?

A: We’re seeing industrial tenants with expiring leases react depending on their circumstance. Tenants who are uncertain on how COVID-19 will affect their business long-term are opting for short-term renewals, while tenants who are confident that their business will thrive are taking advantage of extended landlord concessions and are searching for longer-term renewals.

Tenants expanding their businesses due to shifts in consumer demand are using local broker expertise to understand the market. A slight supply uptick has shifted the market from a robust landlord-favored one back towards the middle, allowing tenants to find more economical transactions.

Q: What industrial trends are you seeing right now?

A: Climate-controlled warehouse space (cold storage) for perishable goods is picking up, and the demand for freezer cooler space continues to rise as consumers increasingly order food online or through food delivery apps.

On the other hand, retail took a hit in 2019, and is experiencing an even larger downturn in 2020. The industrial sector looks to benefit from this as some retail tenants shift inventory from showroom to storage/online sales.

Q: What is the post-COVID outlook for the industrial sector?

A: The outlook is cautiously optimistic, especially for the industrial sector. As demand has shifted across different sectors, it remains strong on the industrial side. Yet, there is still plenty of uncertainty for most businesses, as the pandemic has not ended and its effects on society are wide-ranging and the duration is unknown. Until that uncertainty is relieved, the economy will not be in full recovery mode.

For comments, questions or concerns, please contact Paul Bubny

Connect

Inside The Story

Connect With Bradford’s Santaularia

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Economy
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