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The industrial sector saw a remarkable 31% increase in square footage delivered over the past year.

Fewer warehouses under construction, e-commerce continues to gobble it up. Rent will continue to grow in 2024.

Rising insurance costs are driving asset owners to invest in resilience measures to mitigate risk. In Louisiana, they're even offering discounts for fortified roofs to make the state safer. Investing in resilience is the trend for 2024!

1/ 💭 The quote reminds us that forecasts aren't crystal balls into the future; they're more like mirrors reflecting the forecaster's perspectives, biases, and expertise. In essence, they reveal the forecaster more than they unveil the future itself.

🧵 Thread: Embracing the Enigma of the Future 🚀 Warren Buffett once said, "Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future." Let's unravel the wisdom in this quote and explore its implications.

Brace yourself. Returns are coming. Now that we've gone through the busiest shopping season of the year we can expect a considerable portion of goods to be returned. It's a segment of the supply chain called "reverse logistics" and is essentially the processes involved when a customer returns an item. As e-commerce rises, so does reverse logistics, with a recent article in the WSJ suggesting it's becoming a "trillion dollar problem". Here are a few noteworthy points from the article: ✅ Americans are estimated to buy more than $5 trillion of goods this year ✅ Shoppers returned 16.5% of items they purchased last year, valued at nearly $817 billion and double the percentage of goods returned in 2019 ✅It costs merchants about $27 to handle a return for a $100 online order Here are one of the potential outcomes when an item is returned: 🛒 Item is re-shelved and re-sold (re-manufactured if needed) 🛒 Item sold at liquidation or discount centers 🛒Item is donated 🛒 Item thrown in the garbage Reverse logistics is becoming a massive industry in itself and requires a considerable amount of warehouse space to accommodate.

In the last 15 years, the tenant base for small bay industrial spaces has evolved significantly. 3 new industry sectors have emerged, each contributing around 15% to the demand. These sectors include: E-commerce, tech innov., & advanced manufacturing.

Small bay industrial properties located in infill areas, offer solid protection. Urban residential developers are eyeing them – making them versatile assets.

Small bay industrial properties = diversified investment. With 4-10 buildings and 20-200 tenants, they're a shield against economic downturns. High tenant retention + low credit risk make them even more attractive.

Investors are flocking to small bay industrial properties for higher yields Compared to big box properties, they offer 150-200 basis points more in cap rates. Perfect in a market with compressed rates for larger warehouses.

Short lease terms in small bay industrial properties: your secret weapon against inflation. While big box warehousing locks you in for 5-10 years, the short term leases let you ride the rent growth wave within just 3 years.