Top Takeaways from NAIOP’s I.CON West 2024
One of the best annual industrial events in commercial real estate is NAIOP’s I.CON West (& East). This year, in Long Beach, CA, a record-setting crowd of over 1,200 of the industry’s top industrial owners, developers, investors, and vendors attended for expert speaker insights, exclusive tours, networking, and deal-making opportunities.
The conference kicked off with keynote speaker Christine Cooper, Ph.D., managing director and chief U.S. economist with CoStar Group. Cooper began with an overview of the economic environment, which she called “the good news.” Going on to say, “The nation’s GDP is strong, and the economy gained momentum in the second half of 2023 – we saw economic growth of 4.9% and 3.2% in Q3 and Q4, respectively — much higher than expected.”
She concluded, “Consumers are spending and will continue to do so, and interest rates are likely to fall this year. We can hope for a recovery from the full effects of the pandemic in 2025.” A positive outlook overall.
The conference was jam-packed with breakout sessions and tours, providing abundant content and leaving attendees with much to unpack. Some of the topics of the sessions this year included:
- Forecasting the future of the supply chain
- Managing construction materials and labor costs
- Addressing EV truck-charging demand
- Conducting environmental due diligence
- Promoting health and wellness in industrial buildings
- Integrating AI and technology in industrial development
- Expanding industrial development in Mexico
To say it was a full couple of days of sharing quality content is an understatement. There are so many new and evolving regulations within Industrial CRE to cover in a short time. Check out NAIOP’s blog for more information specific to the breakout sessions.
Top Takeaways
- Industrial real estate is rebalancing from its boom-and-bust years.
- To stay competitive, supply chain experts must invest in efficiencies in both the external part of the chain (e.g., port operations) and transportation (e.g., robotics).
- U.S.-Mexico trade is now outpacing U.S.-China trade by more than 40%.
- Now is the best time to capitalize on grants and incentives for California’s phased transition to all zero-emission vehicles.
- Industrial tenants are expanding beyond California into other regions of the Southwest. It is a complementary strategy rather than a California exodus.
- ESG regulations and reporting requirements can lead to market differentiation, improved communication with tenants, and interest from global investors.
- Health and wellness in industrial buildings cover a wide range of considerations, including individuals’ physical, mental, and emotional health.
- By paying early attention to all aspects of due diligence, projects can be completed on time and under budget – with no surprises.
- Some ESG changes in industrial buildings can have low costs but high impacts, while design adjustments can save money during development.
- Power is a major consideration for industrial tenants in Southern California.
- AI is based on data analytics and machine learning; correct data is the first and most important step in using AI.
- Industrial outdoor storage is a functional piece of the supply chain.
Read Top Takeaways from I.CON West 2024 for more details.
Key Highlights by the Numbers
- China has invested in 18 million square feet of industrial space in Mexico since 2019.
- There are 25 million total consumers in Southern California. They spend, on average, 10% more than typical U.S. consumers.
- Transportation and inventory account for 60-70% of supply chain costs.
- In 2023, more than 150 foreign companies said they would open new operations or expand into Mexico. These sectors include automotive, energy, manufacturing, and IT.
Finally, four national experts took the stage to discuss what lies ahead for this popular asset class and the results are in:
- Capital raising is down; cash is king
- Not much distress, but more scrutiny
- Embracing ESG (Environmental, Social, and Governance)
- Nearshoring and onshoring
Read the full article, Analyzing Capital Market Trends.
Saunders Seismic had the pleasure of exhibiting this year from the halls at the Long Beach Convention Center:
Saunders Exhibit Booth
Registration Info Signage
Day 1 Networking in the Exhibit Hall
We thank everyone who stopped by our booth and participated in the drawing. Congratulations to Holly Fessler from Birtcher Development! We look forward to connecting with everyone at future events and appreciate your support. See you at I.CON West next year!
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As the industrial real estate sector evolves, ensure your properties are resilient. Saunders Seismic offers expert commercial and industrial seismic retrofits and structural repairs across California, Washington, Oregon, Nevada, and Utah.
Contact us to learn more about safeguarding your assets in 2024 and beyond.