Logistics fundamentals remain strong
Uncertainty persists in the commercial real estate sector as capital markets continue to cool and leasing activity decelerates. The collapse of SVB, Signature Bank, and First Republic, among others, saw banks respond by tightening lending standards, which is especially prevalent in the construction lending world. As a result, construction starts declined in Q1 for the second consecutive quarter, and by 50% when compared to two quarters ago.
Despite moderation in sector performance, logistics fundamentals remain the strongest among core CRE asset classes. Capital market and leasing activity, while cooling, are still performing at par with or exceeding pre-pandemic averages. Real PCE remains above the pre-pandemic trendline, and e-commerce’s share of retail sales continues to tick up (though still not matching highs seen in late-2020). A continued push for global trade realignment, manufacturing onshoring, and resilient
retail spending will continue to support infill logistics demand in the nation’s global gateway markets.
We are pleased to announce our first development groundbreaking along with another strategic acquisition.
As always, thank you for being part of our network!
DEAL NEWS
Genesis 121, Grapevine, TX
BLP is excited to announce the groundbreaking of Genesis 121, a 182,983 SF, rear load warehouse in Grapevine, Texas. Situated in the heart of the DFW Airport submarket, Genesis 121 is located 2 miles directly north of DFW International Airport. At completion, the state-of-the-art facility will feature a 36' clear height, a 140' truck court, 40 DH doors, 210 parking stalls, and 52' x 60' column spacing. The development was capitalized through a joint venture between BLP and Clarion Partners, and building delivery is anticipated for Q1 2024.
Thank you to Payson MacWilliam and Casey Dillon of Clarion Partners for their support in this project.
For leasing inquiries, please reach out to Jeremy Kelly or Bob Hagewood of Stream Realty, Ryan Grable of BLP, or Jack Stamets of Clarion.
1200 Valwood Parkway, Carrollton, TX
BLP is excited to announce the acquisition of 1200 Valwood Parkway, a 30,328 SF, 1998 vintage, rear load warehouse. Sitting on 3.25 acres, the tilt-wall facility features a 24' clear height, 140'-150' truck courts, 4 DH doors with a drive-in ramp, and approximately 0.9 acres of excess land for future additional parking or outdoor storage.
Thank you to Mark Miller and Chase Miller of NAI Robert Lynn for their assistance in the closing of this transaction.
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Global trade continues to undergo a profound realignment. Reshoring of American manufacturing operations has accelerated dramatically over the past few years, spurred in part by the pandemic-era increases in international trade restrictions. These factors continue to support Logistics demand.
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Bridge Logistics Properties, 1501 Quail Street, Suite 110, Newport Beach, CA 92660, United States