How did the commercial real estate industry fair in 2022? Find out as hosts Bill Condon and Matt McGregor share the absorption of top markets, the state of the construction industry, what's happening at the borders (including port activity) and the three dynamic factors impacting our market in 2023.
- What the net annual absorption rate is for 2022 and how it compares to 2021 - what an unbelievable year!
- What one of the best markets was (surprising as not a ton of land is left there) and why it's surprising based on what has occurred there in the past years.
- How tenants will pay for a new product if it's closer in, to be in the center of the valley.
- Which products and deals performed very well.
- What areas saw growth and what markets saw a dip.
- What areas had a 2x growth of what the normal absorption has been in the past.
- Bill and Matt compare the different markets. For example there was not a huge difference between the Kent and Sumner market.
- Who had a negative absorption and who has the biggest vacancy rate right now.
- Why we are heading into 2023 in a very tight market. We are in a very historic landlord market and continuing to drop.
- The state and growth of the construction industry (its absorption rate) and how much of it is pre-leased. The pre-leasing numbers are quite low and how it's changed from Covid to a post-covid era.
- Matt and Bill predict whether plans will pause or if construction will continue. Are they building to specs still?
- What markets will continue with construction.
- Matt and Bill share predictions for port activity and what to watch for. What markets are increasing and which one's are decreasing.
- What may happen close to the borders, in Mexico and even Canada.
- Mexico is key to our manufacturing future
Three Dynamic Factors Impacting our Market in 2023
1 - Inflation resulting in raising interest rates has slowed sales activity and they share their prediction on sales over the upcoming year.
2 - Less available product will lead to a lower rate of absorption, but we'll still have a very healthy year, even getting back to post pandemic numbers. Find out what rate they each predict!
3 - 3% was the market annual increase and it's changed to 4%. Matt and Bill disagree a bit on what the norm will be.
Matt and BIll end sharing their opinion on what's coming up in 2023, for pricing, land values, and market differences.
Mentioned in this episode:
Industrial Advisors - https://www.industrialadvisors.com/
