10 Industrial Insights from I.CON West 2023 -NAIOP’s Industrial Conference
Below are the key takeaways from I.CON West 2023:
- The outlook for the U.S. economy is closely tied to the labor market, which is historically tight.
- Industrial absorption is cooling but demand remains strong overall.
- The COVID-19 pandemic upended the supply chain and changed the calculus involved with nearshoring.
- Some markets offer advantages based on labor market indexes and total cost modeling, but the logistics labor market in the Inland Empire remains hard to beat.
- Vertical industrial – whether used for fulfillment, maker spaces, labs or light manufacturing – requires a new approach, different requirements and a whole lot of explaining.
- Investors are interested in industrial opportunities in Southwest markets, particularly in Las Vegas and Phoenix, which have seen strong population growth.
- Power is the number one challenge for companies building or investing in the Mexican market. Access to strong, reliable power is critical to manufacturing and assembly facilities.
- Conversations and connections with the community are critical in helping industrial coexist peacefully with residential real estate.
- Get buy-in early – and from all parties involved – in order to streamline the implementation of sustainability strategies and achieve net-zero targets.
- Flexibility, scalability, and the ability to start operations quickly are key considerations for advanced manufacturing facilities.
The commercial industrial market is still in high demand with a ton of moving parts and factors such as solar, labor, various markets, and power that are having a major impact on development and advancements in the industry. The progress and forward thinking with the new developments will at some point influence ordinances to update older buildings and warehouses. Similar to the current seismic retrofit ordinances in place for soft-story buildings, the effects of adding solar panels will increase the overall load on a building. As a result, the additional load will require the building to implement structural strengthening details or to perform seismic retrofits to re-establish the integrity of the structure/ building.
It is important to have annual building assessments on all your buildings / warehouses in order to determine the current condition or structural integrity of the building. Be prepared and have regular inspections to assess the seismic risks of your commercial industrial real estate assets, https://saundersseismic.com/contact/.
For more information on I.CON West visit NAIOP website here: I.CON West Information