The industrial sector is bustling with activity nationwide, fueled by a stronger economy, e-commerce and the modernization of distribution centers. Forbes recently reported that industrial real estate is experiencing the lowest vacancy levels in three decades, and net occupancy, which has steadily increased for 28 quarters, is now at record levels.
At Opus, industrial development and construction are key areas of expertise, as evidenced by our impressive portfolio of build-to-suit projects and current industrial leasing opportunities.
Working closely with our financial partners, we are helping to meet industry demands with speculative industrial buildings designed to meet the needs of today’s discerning tenants.
Distribution centers in particular are becoming more sophisticated and specialized. Businesses are using state-of-the-art material handling equipment, which allows for higher racks and better use of space to accommodate more inventory. Thus, minimum 36-foot clear height buildings are preferred by a growing number of investment partners. Parking requirements have also increased, as many businesses are consolidating facilities and combining multiple operations within their distribution centers.
North Aurora II, a 452,152-square-foot speculative building in North Aurora, Ill., is a good example. Following the success of I-88 Gateway Logistics Center, North Aurora II was developed to meet growing demand for distribution and light manufacturing space in suburban Chicago. The building features 36-foot clear height and 250 car parking spots with the ability to expand to over 400 cars. This flexibility boosts the value for tenants and investors.
A Sound Investment
Due to a favorable stock market and low interest rates, real estate is viewed as a solid investment for both businesses and investors. Core industrial properties are also considered “darling” investments compared to other real estate investment types. Core industrial buildings tend to hold their value and the cost to re-lease second generation space is less than other real estate asset classes. For these reasons, many sophisticated money institutions, like pension funds, private equity and insurance companies, find investing in industrial property attractive.
At this point in the cycle we see continued growth and room to expand. With our financial partners, we have developed speculative industrial buildings to meet the needs of clients today and in the future.
See Our For Lease Opportunities