There was also discussion on how federal COVID relief helped businesses, municipalities and even state governments. “From an industrial standpoint, I think we’ll see more people asking for more office build outs.” “We’re not sure what it looks like as far as the timeframe goes, but we’ve learned how to communicate and work efficiently electronically,” Moore said of the big return to the workplace. “We can run the business virtually and you can scale and deploy more capital with less people, but I think everyone in the industrial space is trying to recruit talent and understand how do you get younger people in and how do you get them to build their networks and understand the investment thinking and logic?”Īdam Moore believes that there may be more requests to build office space within industrial facilities for businesses to consolidate space and staff. “I think the interesting thing is going to be the younger group who needs the apprenticeship and networking,” said McKiernan. One of the biggest challenges the industry will face is bringing new talent into the fold and getting them up to speed, suggested Brian McKiernan of Centerpoint. The discussion moved on to what the future of the industrial office and workplace looks like. In response, Jim Stanton quipped, “You can come to Indiana, we’re open.” “Steel pricing is still up significantly and one of the other issues is the entitlement process,” Moore said. “The COVID discount lasted five days.” But there are still challenges to face, Adam Moore added. “On the industrial side, the fear was short-lived,” said Rene Circ of the early days during the pandemic. And the momentum never really fell off, according to others. “The pandemic helped accelerate some deals,” said Beverly Hayes. The first panel included the following professionals: Josh Hanna, partner at Kirkland & Ellis Beverly Hayes, senior advisor at SVN Brian McKiernan, SVP of development with Centerpoint Properties Jim Stanton, interim Secretary of Commerce for the State of Indiana Rene Circ, senior managing director and COO of GID Industrial and Adam Moore, senior regional director for First Industrial Realty Trust.Ī lot has changed in the world and the Chicago region in the last twelve months, and the group was initially posited with discussing some of the impacts of the pandemic that they have witnessed on the job. The average size of a new facility was roughly 275,000 square feet and retailers and consumer goods represented a big chunk of the activity with 25% of the total square feet leased in Q1 2021. The absorption number was significant, Marshall noted, when compared to the 3 million square feet during Q4 2020 or the 1.52 million in Q1 2020.Īdditionally, 20 million square feet of new industrial space was under construction, which Marshall highlighted as being one of the highest amounts of all time. For Q1 2021, the industrial vacancy rate was 6.2% and absorption was 5.7 million square feet. And the numbers presented by Marshall back it up. “There’s no doubt about it that the Chicago industrial sector is booming,” Marshall said, kicking off the event. The summit kicked off with keynote speaker Adam Marshall, senior managing director of Newmark’s Chicago office, 2021 President of the SIOR Chicago chapter, and REjournals contributor. The list of panelists included nearly two dozen industrial insiders with a diverse experience set and expertise.Īnd with the industrial market as strong as it has been in recent months, there was a lot to discuss. The event, which was held at the Hyatt Lodge in Oak Brook, was the first summit for the Chicago area to meet in person since the beginning of the pandemic over a year ago. Top professionals within the industrial real estate sector across the greater Chicagoland area gathered in person on April 23rd to discuss the state of the market and provide predictions for what’s to come in the near term future at the 18th Annual CIP Industrial Summit.
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