Warehouse demands drive big acquisition moves
Owners, are you positioned well to ride this wave?
As reported in Supply Chain Dive, more than 2,000 new establishments classified as either warehouse or storage have been added to the U.S. market since 2008, according to numbers from the Bureau of Labor Statistics (BLS). And yet this growth has not been enough to keep pace with the increase in demand for these types of industrial real estate spaces. If you own or manage warehouses, this could be a golden time to sell at the peak of the market and get top dollar for your business.
This market dynamic is among the leading reasons that have attracted a huge influx of capital in the warehousing space. On June 2, 2019, Blackstone announced a deal to acquire 179 million square feet of urban logistics properties. These are similar to the types of warehouses used by Amazon.com Inc. and other retailers to fulfill online orders. The deal with Singapore’s GLP Pte, the second-largest owner of U.S. logistics real estate, will almost double Blackstone’s U.S. industrial footprint.
On July 17, investment firm Colony Capital is contemplating a $5 billion sale of Colony Industrial, its subsidiary that owns warehouses.
Takeaway for Owners:
Are you positioned well to take advantage of this heightened interest in your space? If you own or manage warehouses, this could be a great time to consider selling your warehouse facility(ies) at the peak of the market. If you are curious to find out what your business might be worth, contact us at Reserv Equity Partners