How’s Industrial Doing?

Industrial properties — warehouses-slash-distribution hubs in particular — were commercial real estate stars during the pandemic. The wind is out of their sales, though, according to new figures even if sales prices are still stable. Also, hear two Commercial Observer editors discuss the new political power dynamics in New York State when it comes to issues that matter most to the real estate industry.

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— Tom Acitelli, Co-Deputy Editor

U.S. Industrial Real Estate Sales Plummet Compared to 2022

Sales of distribution facilities, supply chain centers and other warehouse properties have fallen swiftly in the past 12 months as the Fed raised interest rates and the e-commerce boom evened out. Approximately $16.3 billion of industrial investment sales were logged in the United States this year through the end of May, according to a new report from CommercialEdge. Last year, industrial investment sales totaled $31.2 billion after the same period. “Due to higher costs of capital and tighter credit conditions, we anticipate many owners will hold properties for the time being,” according to the report. But, unlike office assets, which are falling in value, prices for industrial properties have remained relatively stable, with the national average price per square foot sitting at $129 in the second quarter, down just 1.3 percent from the second quarter of 2022.

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Podcast: Shifting Dynamics & Missing Political Figures in New York Real Estate

In this thought-provoking conversation, Max Gross, editor in chief of Commercial Observer, and web editor Nicolas Rizzi delve into the intriguing changes observed in the annual Power 100 list. Traditionally featuring prominent local New York political figures, this year's list seemed to lack their presence. The discussion unravels the reasons behind this shift and the implications it holds for the real estate industry. Max and Nick explore the promises made by figures like Mayor Eric Adams and Gov. Kathy Hochul regarding housing initiatives, only to find that their influence seems diminished in the face of opposing forces. As they navigate the intricate dynamics, they question who truly holds the power to shape the future of real estate in New York.

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