The outlook for industrial real estate in the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – couldn’t be better, a recent outlook report notes, despite uncertainty regarding potential changes in federal trade policies and the large amount of new warehouse and distribution space currently under construction.
Several sources show demand continuing to grow in the warehouse and distribution sector of the U.S. and Philadelphia commercial real estate markets, including healthy consumer spending, increased demand for e-commerce space, and growth in the medical cannabis industry.
This report on national and Philadelphia commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.
Rent growth for warehouse and distribution properties as well as for U.S. and Philadelphia commercial real estate properties, again ranked among the highest in the world amid historically low vacancies, according to an aggregation of reports collected by the CoStar Group.
The U.S.-led market rent growth in 2016, rising 5 percent or more in some markets, compared to an average 4 percent increase globally among both national and Philadelphia commercial real estate listings. Major coastal markets near large population centers outperformed all other U.S. markets by more than 150 basis points, the reports note.
Rent growth for the warehouse sector is poised to continue as market vacancies remain at or near historic low levels and demand is healthy throughout the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space. Development activity, while high, remains disciplined. Particularly in the U.S., where the studies project a balanced supply/demand picture expected to keep market vacancies low throughout 2017.
But there is another evolving trend impacting the warehouse segment of U.S. and Philadelphia commercial real estate listings: A growing medical-marijuana industry, which also is contributing to the increased demand for warehouse properties in select markets.
After Colorado voters approved the use and sale of recreational marijuana in November 2012, industrial rental increases in Denver posted double digit growth in 2013, 2014 and 2015. If the rent growth that Denver experienced is any indication of what could happen in California or other states where recreational marijuana has been legalized – including Pennsylvania – the impact to warehouse space fundamentals could be even greater.
For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.
Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.
Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.
As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals. If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.
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