Will Industrial Activity Continue to Grow in 2020?
October 28, 2019 | Kelsi Maree Borland | GlobeSt.com
Industrial activity in the Western US hit new records in 2019. Can we expect more of the same from the market next year? It’s becoming a top-of-mind question for many industrial investors in the wake of increasing trade tensions. However, Jon Pharris of CapRock Partners, which focuses on industrial ground-up development and value-add investment in the Western US, is enthusiastic about the market performance in 2020.
“Our team is optimistic about this region given the current strong market fundamentals, which include historically low vacancy rates, high employment rates and strong population growth,” Pharris, co-founder and president at CapRock Partners, tells GlobeSt.com. “The explosive growth of ecommerce and the robust activity at the ports of Los Angeles and Long Beach support the increasing demand for both large-scale logistics buildings and last-mile fulfillment centers.”
Despite some of the looming concerns stemming from trade tensions, Pharris says that the strong fundamentals offset those challenges. “While current headlines over trade wars and the upcoming 2020 election may raise caution flags, the overall investment environment appears stable,” he adds. “The debt markets are maintaining conservative underwriting standards and a significant amount of capital is looking to acquire stabilized investments. We see a relative balance of supply and demand in our target markets of California, Nevada and Arizona, and we are considering new opportunities for value-add and ground-up developments in the West.”
