A Tight Market For Industrial Service Facilities Is About To Get Tighter And Investors Sense Opportunity
October 21, 2021 | Brian Rogal
Everyone is becoming more accustomed to seeing small trucks roam their neighborhoods, delivering goods ordered online. But even as the coronavirus pandemic greatly intensified demand for these services, most municipalities are reluctant to approve proposals to develop new industrial service facilities where distributors and other businesses can store, maintain or dispatch vehicles, heavy equipment or bulk materials.
“Nobody wants to live next to a truck terminal,” JLL Senior Associate Kate Coxworth said.
That not-in-my-backyard, or NIMBY, attitude keeps new supply low, sending rental rates soaring for existing industrial service facilities in markets across the U.S., she added. That’s helped in the past 12 months to draw in a new cadre of developers and investors who now see these facilities as an essential component of the rapidly expanding industrial sector.
“These facilities are the skeleton of the supply chain, and there are more people making the discovery that there are real opportunities here,” Industrial Outdoor Ventures CEO Tom Barbera said.
