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Joint Venture in $54M New Jersey Industrial Buys

E-Commerce Drives Retail, Spills Into Industrial Sector

E-commerce is shaping more than the retail sector, as the race for delivery and e-commerce dominance spills over into the industrial market, as well. The growth of e-commerce, up 15.6% year-over-year in 2016 from 2015, is forcing retailers to focus more attention on last-mile delivery strategies.

That’s creating demand for smaller fulfillment facilities in infill sites closer to where consumers’ orders are ultimately delivered, notes Trepp’s Karina Estrella. Retailers are responding by picking up properties in urban areas, regardless of their existing functionality or condition.

Roughly $20.8 billion in private-label CMBS debt is secured by industrial assets, representing just 4.2% of all non-agency CMBS. Nearly 50% of industrial loan volume is allocated to warehouse and distribution centers, and given the race to keep up with Amazon, industrial demand is expected to remain strong.

Meanwhile, on the investment side, volume for U.S. industrial properties pushed past $23 billion in H1 2017 and industrial investment is up more than 20% year over year, which is outpacing overall CRE investment. Yet, private-label CMBS securitizations for 3Q 2017 issuance was just $461.4 million, a decline of 28% year over year.

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Read more at TreppConnect With Trepp's Estrella

About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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