b'16American Journal ofTransportation ajot.comNavigating a complex industrial(STABILIZEcontinuedtogreaterefficiency.Dueto from page 14) the substantial power demands LEDlighting,andadvancedofautomation,warehousecon-real estate environment energymanagementsystemsstructionincorporatesenhanced to reduce power consumption. electricalserviceanddurable power distribution bars to sup-By Noel S. Liston, Managing Broker, Core Industrial Realty t echnoloGy anda Utomation port operational requirements.d rivee FFiciencyThe pandemic was a defining moment forarecontinuingtoseeredevelopmentandWarehousesarebeingl ocationS ForW arehoUSeSindustrial real estate throughout the country.strong interest for industrial speculative proj- designedtoaccommodatei nclUdei nlandP ortSWhile offices were shuttered, most industrialects. The cost of capital has nearly doubledtechnologyandautomationProximitytocustomers real estate assets were deemed essential andfrom the spring of 2022 to the spring of 2025.throughspecificstructuraland suppliers is an important continued to operate throughout the pandemic.This has had an impact on developer appetiteandinfrastructuralchanges,considerationforwarehouse This created a spike in values for industrialand capital partner participation in speculativeincludingreinforcedfloor- locationselection.Inlogis-realestateassetsnotseeninmoderntimes.industrial projects for secondary and tertiarying,higherverticalspacetics, distance equals time and Along with investors looking to deploy capi- markets. The reduction in industrial specula- utilization, optimized layoutsmoney,sowarehousesmust tal into industrial real estate, we experiencedtive development in 2025 and 2026 will pro- with designated automationbeinstrategiclocationsto a surge in demand due to the transition ourvide a built-in governor for the overall marketzones, and strong power andminimize the distance goods economy made during the pandemic to onlineand balance supply with demand, creating adata networks. must travel, resulting in fewer commerce.A 31% increase in e-commercemore stable and predictable warehouse envi- Inthepast,warehousesdelays and lower costs.in a span of 12 months created an unprece- ronment moving forward.wereoftenbuiltwithwideIn addition to these tradi-dented demand for industrial real estate space,The start and stop nature of tariffs createdaislesdesignedforequip- tionallocations,Inlandports namely warehousing.a surge in demand for warehouse space ear- mentoperatedbyhumans.arealsobecomingcrucial Thecurrentwarehousevacancyinthelier in 2025 as manufacturers and wholesalersRobotics can navigate tighterstrategiclocationsforware-UnitedStatestodayisapproximately7.3%built up their inventories to try to get aheadspacesthanmanualequip- house facilities and are evolv-compared to just below 3% during the peakofanticipatedtariffs.Inthesecondquarter,ment, allowing for narroweringintologisticshubsthat yearsof2022and2023.Vacancyratescompaniespairedbackordersandpausedaislesandmorecompactconnectinteriormarketsto throughouttheUnitedStatessignificantlydecisions on leasing industrial space as tariffsstorageconfigurations.Theglobaltrade.Thesefacilities vary market to market. A market such as thewere announced and/or enacted. Most recentlylayoutincludesaspecificoffer reduced congestion from greater Chicagoland market is seeing vacancyin the third quarter, we see renewed demandzonefordifferentfunc- overcrowdedcoastalports. around 4.6% while outlier markets and emerg- from manufacturing and auto sectors and antions,likereceiving,auto- Inlandlocationsoftenhave ing markets are carrying higher vacancy ratesoverall more stable environment. Well-locatedmatedpacking,shipping,more available land and lower closer to 10%. This is due to an abundance ofinfill industrial assets remain in high demandandroboticcharging/main- realestateandlaborcosts speculative industrial that was developed anddue to factors such as infrastructure and moretenancestations.Therearecomparedtodensecoastal delivered post pandemic. Construction deliv- importantly,labor.Despitearecentuptickoftenphysicalbarriersorports. Inland ports are becom-eries for new speculative industrial develop- in the unemployment rate (4.3%) labor is afloor markings that delineateing highly strategic locations ments are estimated to have dropped by 35%critical concern for most all the occupiers ofhuman and robot operationalfor warehouses because they in 2025 and we anticipate a similar or slightlyindustrial space. The recent uptick in unem- areas to ensure safety. offercentrallocationsthat greaterreductionfordeliveryofIndustrialploymentislargelylimitedtowhitecollarTheentiredesignisoffer connected, resilient, and Spec product in 2026. Infill well establishedemployment,immigrationpatternsandnewintendedtominimizetravel(STABILIZEcontinued on industrial markets remain tight on space and(COMPLEXcontinued on page 18) time and bottlenecks, leadingpage 18)Superior Service. Tailored Solutions. Higher Standards. Learn More www.coreindrealty.com 630-786-2424 1211 W. 22nd St, Suite 529, Oak Brook, IL 60523'