Another exciting chapter unfolds at BLP as we look back on Q2 of 2024. We're thrilled to share that we've added four new acquisitions to our portfolio, finalized four lease agreements, and completed the land acquisition of a fully entitled site in Somerset, NJ. These achievements highlight our dedication to growth and resilience in the industrial real estate market. Explore further insights into our latest deals, market commentary, and more from the past quarter by reading below...
QUARTER IN REVIEW
Industrial Absorption Doubles
The second quarter of 2024 saw national absorption of industrial space double, from 21M sf in 1Q24 to 46M sf in 2Q24. Despite this surge in demand, US industrial vacancy rose to 6.1% on the heels of a record supply wave, marking the first time in nine years that it has exceeded 6%. However, vacancy remains well below the 10-year pre-pandemic average of 7%, and this absorption trend indicates a resiliency in demand driven by secular tailwinds such as ecommerce, on/nearshoring and manufacturing resurgence.
Supply Chain Resiliency
A focus on bolstering supply chains is pushing logistics users to diversify their operations, driving new space requirements nationwide, particularly for the most modern and efficient facilities. Ongoing global supply chain disruptions underscore the advantages of a make-where-you-sell strategy, especially for critical industries such as semiconductor fabricators, advanced manufacturers, and same-day delivery retailers.
Onshoring, nearshoring, and the expansion of domestic manufacturing are expected to generate additional demand for the logistics sector, which is critical to service upstream suppliers and downstream distributors. U.S. construction spending on manufacturing facilities surged to a historic high of $222B between March 2023 and March 2024, providing sound evidence of the onshoring trend.
Industrial Values (So Far) Down Less than Prior Cycles
Industrial values are roughly 17% off 2022’s peak, primarily due to the interest rate reset and resulting economic slowdown. Yet, relative to the last downturn, today’s industrial market entered this slowdown from a stronger place fundamentally - national vacancy at the peak was 3.1% vs 9.1% last downturn, and vacancy is expected to moderate more quickly as construction starts have fallen by 40% since peak. Demand, though uneven, has generally proven more resilient than in prior downturns due to a structural shift in logistics demand, in part attributable to ecommerce, manufacturing, and demographics. Valuations have an added layer of support in embedded mark-to-market opportunities for existing assets due to a 50% increase in asking rents since 2017. As asset prices reset, we look forward to unique and creative acquisition and development opportunities.
ACQUISITIONS
Southeast Region - 3655 Atlanta Industrial Drive NW, Atlanta GA
 | BLP acquired Transwest Industrial Park, a three-building park totaling 415,103 SF located in the infill Atlanta Industrial Park (AIP), a micro market within the I-20 West submarket. This highly desired location has immediate access to I-285 & I-20 and excellent proximity to Atlanta’s CBD and population centers. The park features 24' clear heights, 140'-165' truck courts and is 81% leased to a diverse roster of tenants with a move-in ready 80,576 SF suite available. |
Central Region - 2323, 2401, 2525 & 2535 Ridgepoint Drive, Austin, TX
 | BLP closed on Promontory Point, a four building, Class A portfolio totaling 180,829 SF. The infill buildings are located at the crossing of Highways 183 & 290 in Austin, TX, providing excellent connectivity to the city’s Austin's rapidly densifying CBD. Promontory Point features an above-market car parking ratio, 20' clear heights, 135' truck courts, and all buildings are fully air conditioned. Existing tenancy comprises a diverse roster of investment-grade companies, with one remaining availability totaling 20,278 SF. |
West Region - 7748 S. 200th Street, Kent, WA
 | BLP continues to expand its Seattle portfolio through the strategic acquisition of a 38,954 SF infill logistics facility. 7748 S 200th Street offers unparalleled accessibility, being less than a mile from State Route 167, 2 miles from the 5 Freeway, and 3-mile distance from the bustling SeaTac Airport. Notably, it enjoys a strategic location just 12 miles away from both the Port of Tacoma and the Port of Seattle, enhancing its appeal as a prime industrial hub in the region. |
Southeast Region - 3201 NW 116th Street, Miami FL
 | BLP closed on 3201 NW 116th Street, a 77,500 SF high-throughput, transload last-mile warehouse located in one of Miami-Dade’s most established industrial parks. This off-market acquisition represents a deep discount to replacement cost and builds on our South Florida strategy of acquiring highly functional logistics assets with great access to highways, ports, and affluent population bases in one of the country’s most land constrained industrial markets. |
LEASES
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4525 Airline Drive, Houston, TX
| 10629 Norwalk Blvd., Santa Fe Springs, CA
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250 Circle Drive, Piscataway, NJ
| 2100 State Highway 121, Grapevine, TX
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CONSTRUCTION UPDATES
Park South | GSW - Grapevine, TX
BLP broke ground on Park South | GSW in October, with delivery expected Q4 2024. The project features two Class A rear load warehouses totaling 284,865 SF. Each building includes 43 dock-high doors, two grade-level doors, 24' - 32’ clear height, ample car parking including EV charging, and will be delivered with spec office. Park South | GSW is available for pre-lease, and can demised to suites ranging from 20k to 285k SF.
485 Elizabeth Avenue - Somerset, NJ
BLP completed the land acquisition of a fully entitled, 7.5-acre site in Somerset, NJ. The site will yield a 76,230 square foot Class A distribution facility that will feature 10 dock-high doors, 1 drive-in door, and a 135’ truck court. With close proximity to I-78 and I-95 via I-287, Somerset provides convenient access to the densest and most affluent neighborhoods of New Jersey and is within a 60-minute drive from the Ports of New York/New Jersey, EWR Airport, and NYC.
FEATURED AVAILABILITIES
ABOUT BLP
BLP is a vertically integrated logistics real estate company and investment manager led by tenured, multi-disciplinary real estate veterans with experience navigating several economic environments over the past three decades. Its founding partners have closed over $20 billion of transaction volume and employ a disciplined investment strategy that is both cycle tested and innovative.
Contact us today for more information about BLP.
Bridge Investment Group Holdings LLC (together with its affiliates, “Bridge”) is providing these materials (the “Materials”) regarding Bridge’s Logistics Properties strategy and the type of transactions targeted on a confidential limited basis, to you (“Recipient”). The distribution to you of the Materials is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any vehicle managed by Bridge (“Fund”), including those managed by Bridge’s Logistics Properties strategy. Any such offer or solicitation of an offer will only be made pursuant to a Fund’s PPM. Statements contained herein are made as of Q2 2024 unless stated otherwise herein. The Materials are intended for authorized recipients only and must be held strictly confidential. No portion of the Materials may be forwarded, shared, reproduced, or distributed in any format without the express written approval of Bridge. This overview should not be regarded by the Recipient as a substitute for the exercise of their own judgment and the Recipient is expected to rely on their own due diligence if they wish to proceed further in investigating a potential investment in a Fund. This overview may contain forward-looking statements, including but not limited to targets, forecasts, estimates, opinions, and projections that involve elements of subjective judgment and analysis. These forward-looking statements are subject to various risks, and Bridge undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. The Recipient should not construe the contents of this investment overview as legal, tax, accounting or investment advice or a recommendation. Bridge Logistics Properties Fund Manager LLC and Bridge Investment Group are trademarks of Bridge.
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