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“We’re trying to stay a cycle ahead and invest throughout this period while remaining focused on the fundamentals of tenant demand, logistics and the value of reducing operating costs through logistics-advantaged real estate."
- Brian McKiernan, Senior Vice President of Development in the Central Region
Here’s an excerpt from the article, What’s next for Chicago’s red-hot industrial market?,” about how industrial real estate has fared in 2022 and where experts see it headed in the coming quarters.
As for the remainder of the year, the forecast seems to be a little uncertain. Disruptions to market financing costs are expected, and as interest rates change, according to Brian McKiernan, people are waiting to see where values reset.
“Looking at the next six months,” McKiernan said, “I’d say the first three will be uncertain. Once people see where the dust settles, we’ll have more reasonable predictability regarding buying and selling.”
That said, CenterPoint has been focused on thinking ahead, ensuring the availability of functional facilities despite the problem of limited supply. The company continues to build about two million square feet of new product annually and is doing so on a speculative basis, focusing less on timing the market and more on long-term core fundamentals. Two new speculative buildings of one million square feet each are currently in progress in the Intermodal Center in Joliet, and McKiernan said, though they’re scheduled to be delivered in 2023, CenterPoint is already seeing competitive leasing interest.
“We’re trying to stay a cycle ahead and invest throughout this period while remaining focused on the fundamentals of tenant demand, logistics and the value of reducing operating costs through logistics-advantaged real estate,” McKiernan said.
Investments in logistics-advantaged properties are believed to lessen construction headwinds in terms of pricing, commodity availability and labor and supply chain issues.
About CenterPoint Properties
CenterPoint is an industrial real estate company made up of dedicated thinkers, innovators and leaders with the creativity and know-how to tackle the industry’s toughest challenges. And it’s those kinds of problems — the delicate, the complex, the seemingly impossible — that we relish most. Because with an agile team, substantial access to capital and industry-leading expertise, those are exactly the kinds of problems we’re built to solve. For more information on CenterPoint Properties, follow us on LinkedIn. For all media inquiries, including requests for interviews with CenterPoint executives, please contact media@centerpoint.com or 630.586.8285.
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