Industrial Building on the Upswing
Author: Diana Heeb Bivona
Investors are beginning to pour more money into the creation of industrial buildings. As global trade increases and corporations spend more money to expand operations and distribution markets, building industrial structures have become the next hot topic in commercial real estate.
According to Real Capital Analytics, nearly $33 billion of industrial properties traded hands last year. The average price rose 11% to $62 a square foot last year.
Developers are rushing to cash in too. In 2005, they completed 92 million square feet of industrial space and were working on another 97 million square feet at the end of the year. According to Grubb & Ellis, those are the highest construction levels since 2000.