Conferences offer invaluable opportunities for collaboration with industry peers and provide insights that shape the future of industrial real estate. Fall and spring are known as “conference season” for many in the industry. These events bring together partners, including brokerage firms, equity investors, competitors, and tenants, to discuss both recent trends and future forecasts.
Sansone Group’s investment in professional development has allowed for meaningful representation and engagement at these key industry events. Over the past few months, I’ve had the privilege of attending the Industrial Asset Management Council (IAMC) 2024 Fall Forum, Colliers National Industrial Conference, NAIOP I.CON Cold Storage, and the South Carolina International Trade Conference (SCITC). Through these experiences, I’ve gained significant insights into leadership, pitching strategies, industrial real estate trends, and supply chain shifts. Below are key takeaways shared that are shaping the future of the industry.
Insights in Industrial Real Estate
Many corporate users haven’t fully embraced ESG initiatives due to the high cost of green energy impacting profits. The return of second-generation buildings is influencing Class-A vacancies, with rental rates varying between older and newer properties. Tenant activity is growing, driven by tariff concerns and more Asian companies setting up U.S. operations. We’re seeing early signs of a market rebound, with rent growth expected to continue through Q2 2025.
Automotive companies are speeding up decision-making due to impending tariffs. Turnkey opportunities are highly desirable, as tenants prefer not to invest their own capital in new facilities. Facilities under 50,000 square feet are scarce since dividing larger spaces is often too costly. Despite high levels of warehouse construction, actual occupied space has remained steady. Capital markets still play a role in decision-making, though demand is expected to rise in 2025. Aging cold and dry warehouse facilities will also drive demand for modern designs and infrastructure upgrades.
Logistics, Supply Chain & Manufacturing
Manufacturing projects, such as Hyundai’s in Savannah, GA, are gaining nationwide attention, promoting industry diversification and future growth. Elections in Mexico, Canada, and the U.S. will influence nearshoring and reshoring decisions, with Mexico remaining a key market despite challenges in infrastructure and utilities.
Workforce culture is a major competitive factor as companies enhance workplace amenities to become “employers of choice.” Cargo volumes have decreased after peak season, as shippers moved goods early to avoid tariffs. The effects of the ILA strike on cargo volumes and bottlenecks will be felt for some time. Demand for furniture is expected to rise due to home purchases and relocations. India is emerging as an attractive investment alternative to China. The Southeast U.S. is preparing for continued growth, particularly in regions aligned with future developments. Distribution strategies may shift as companies build more complex supply networks to support global operations.
Economic Trends
The upcoming election is set to have a major impact on interest rates, inflation, and other economic factors. While there are concerns about the long-term economy, current indicators—such as consumer spending and job growth—remain strong. However, “ghost jobs,” where positions are posted but not filled, are skewing unemployment statistics. Slowing population growth due to low fertility rates could impact the labor force in the future.
Inflation remains a challenge, with high demand and excess money driving up prices. U.S. household net worth has risen by $47 million since the pandemic, supporting continued consumer spending. Despite economic concerns, consumers continue to spend, driven by a sense of financial security. Construction spending in the manufacturing sector is on the rise, while states like Texas, Florida, and South Carolina are experiencing rapid growth. Meanwhile, regions like Charlotte and Atlanta are expanding into each other.
These conferences were packed with insights that will ensure Sansone Group stays ahead in industrial real estate. We will use these learnings to continue making informed investments and meet the evolving needs of the market.
