Your trusted industrial real estate partner
SPECIAL ADVERTISING SECTION
INDUSTRIAL REAL ESTATE
given that demand will continue to grow at this pace over the next decade.”
Growth markets
The tariff uncertainty is accelerating nearshoring and reshoring, with Texas among the main beneficiaries.
“ CenterPoint is well positioned to capitalize on the reshoring in Texas,” Andrews said.“ We’ ve done a good job mitigating [ the ] risk to our West region, where we have some of our port markets. We’ ve invested in a lot of developing port markets like Savannah and Houston. That way, we have less exposure in those markets [ most vulnerable to ] the Southeast Asian tariffs.
“ Over the last 10 years, we’ ve built up in the East Coast and Houston, New Jersey, New York [ and ] Savannah to try to balance that exposure.”
Dallas-Fort Worth and Houston are among the fastest-growing locations, Andrews said, noting CenterPoint Properties’ portfolio features 21.4 million square feet in the Eastern United States, 23.3 million square feet in Central US and
16.7 million square feet in the West.
“ Traditional logistics markets are going to rebound, the whole tariff and trade thing eventually will get sorted— it’ s just when. And when it does, there’ s going to be a snap back in demand,” Andrews predicted.
E-commerce remains a major catalyst for new industrial real estate developments.“ Demand drivers are based on the ports and on the need for 3PLs pls to get those goods distributed,” Andrews said.
CenterPoint Properties has made two acquisitions this year, in Houston and Atlanta, and launched a new development near New York’ s John F. Kennedy International Airport.
“ All three are emblematic of our investment and development strategy of concentrating our efforts in the most competitive infill submarkets in the country’ s top industrial markets,” Andrews said.“[ These each ] have robust transportation hubs, are strong port markets and offer users access to dense and growing populations.”
When asked how optimistic he was regarding the outlook for the US logistics and industrial real estate sector on a score of 1-10, with 10 being the most optimistic, Andrews said he was a seven.
“ I believe the economy will stay strong even though there is talk of recession— or maybe we have been in a recession by the definition of the word,” Andrews said.
“ I’ m cautiously optimistic that it’ s all going to get sorted out and demand will come back once there’ s some certainty in the market. It might snap back quicker than we think.”
Institutional caution, rising vacancies and softer rents signal a mid-cycle pause rather than a downturn for US industrial properties. Smaller, cash-rich users are seizing the chance to buy, developers are slowing starts and AI-related data-center demand is changing land economics in power-rich corridors.
With e-commerce still expanding and further reshoring expected, the sector appears poised to recover once the tariff fog clears.
email: 999mattsmith @ gmail. com
Your trusted industrial real estate partner
Developing, acquiring and managing industrial properties in America’ s top port markets, CenterPoint optimizes supply chain efficiency. With headquarters in Oak Brook, Ill., CenterPoint also operates seven regional offices in California, Florida, New Jersey and Texas. Its national portfolio comprises more than 60 million square feet of industrial space across more than 300 properties, serving nearly 400 customers. To learn more, visit CenterPoint. com and follow CenterPoint on LinkedIn.
CenterPoint has built its reputation since 1993 as an innovative business that consistently delivers forward-thinking industrial real estate solutions for the world’ s leading retail, logistics and e-commerce companies. That commitment has also helped CenterPoint forge strong broker and community relationships in the US’ s top markets, coast to coast.
Investing in your success CenterPoint’ s wide-ranging financing capabilities help us reliably and quickly complete challenging industrial port, highway and rail-proximate real estate projects in the country’ s top industrial markets. The company’ s investment team has the experience and ingenuity to close even the most complex deals efficiently and confidently. Its strong financial backing, local market knowledge and long-standing industry relationships makes CenterPoint bold and decisive— saving customers and partners time and money. requirements in each of its markets across various asset types, ranging from traditional build-to-suits to world-class intermodal centers, container storage facilities, state-of-the-art distribution centers, light manufacturing facilities, campus and park development, cold storage distribution centers, data centers, and more.
CenterPoint’ s development teams nationwide have deep expertise in redeveloping environmentally challenged infill sites. Its newly constructed facilities are LEED-certified, and the company is leading the way in helping customers prepare for a zero-emission future by offering solar energy and EV charging services.
Building a portfolio that works for you
CenterPoint’ s portfolio of strategically located real estate helps customers maximize efficiency, and its local property management teams are ready to tailor properties to specific logistical needs. n Developing sustainable supply chain solutions CenterPoint can deliver on your unique industrial real estate
48 Journal of Commerce | July 7, 2024 www. joc. com