b'22American Journal ofTransportation ajot.com(DEMANDcontinuedlogistics real estate observed from page 20) thesametrend,writing economictimeswouldhaveBrownfield urban infill sites beenenoughtoputapolarwillprobablybethestron-freeze on any market expan- gest opportunity to meet the sionthelogisticsrealgrowingdemandforurban estate market has relentlesslylogistics.Multistoryramped continued to move forward inlogistics buildings are already spite of the stagflation pronean important solution in Asia US economy. Pacific, but this type of devel-After all, it is hard to missopment is considered to have all the ground breakings andmore potential in Europe than dealmakingannouncementsNorth America. that have doggedly persistedInNorthAmerica,the despitethedownturninthepandemic kick-started a trend economic climate. No doubt,ofmoreworkersoperating someofthisconstructionfromahome-officeand activityisattributabletoaboostedthealreadyacceler-clearing out of a post-COVIDating growth of e-commerce logjam of building projects. largely at the expense of Why?Itis,astheoldbrick and mortar retail stores.Coast or East Coast? I know thatminal 2 miles away. ticsoperators,hasslowed expression goes, complicated.These trends have underwrit- some decisions are being madeIn a March report, Cen- its construction program but It goes back to the new logis- ten both the demand for moreaboutbuildingtransloadfacili- terPointsaidthecompanynonetheless there clearly is a tics panorama emerging in theurbanwarehousingandtheties where they had previouslyhadpreleasedadevelop- lot of groundbreaking coming post-pandemic environment.re-purposing of office build- considered building those loca- mentunderconstructionnearin the near future.r eConneCting thel inks ingssometimes newly builttions on the West Coast becausePort Newark-Elizabeth to Neww hat to look for in24andevenmallsintonewasthesituationgoesonandJersey-basedCODALogis-in thes upplyC hain warehousingspace.Theseon people have got the moneyticsandDistribution.Cen- Thelogisticsrealestate The worldwide COVID- factors are contributors to theraisedandtheyvegottoputterPointbrokegroundonmarket looks like it will again 19pandemiclockdownscre- resilience of the logistics realthose structures in the ground. Inthe321,765-square-footClassbe cooking in 2024. ated supply chain disruptionsestate, even in less than idealthe boardrooms of Chicago andA industrial distribution facility atPrologis in summing up onascalenotseensincemarket conditions.KansasCity,theyaremaking1501W.EdgarRoadintheirexpectationfor2023 WorldWarTwo.AsthethedecisiontogotoNorfolk,LindeninNovember2022.wrote,Torecap,competi-world began to emerge froml oCation , l oCation ,forexample,ratherthanOak- Constructionisexpectedtionforspacemaylessen the pandemic and the supplyl oCation land because they dont want totobecompletedinAugust.in some markets as the con-chains began being re-estab- There is an old saying thatwait. TheyhavedecisionsthatCenterPoint acquired the morestructionpipelineempties lished, it was clear that theythe three most important factorstheyhavetomake.(SeeStasthan 20-acre site of a formerandthepaceofdecision-wouldntbereconnectedin real estate are location, loca- Margaronis Feb 09, 2023, AJOTWalmart-anchoredshoppingmakingslows,butthese inexactlythesamewayastion,location. AndtheidealInsight:AgTCSFriedmanncenter in Q4 2020.circumstances will likely be in the lead up period to thelocation for logistics real estatesays ILWU/PMA impasse couldAnd quite aside from theshort-lived.Planningfor COVID outbreak.is shifting. The growth of Eastresult in permanent West Coasttraditional logistics real estate,space is still important, par-In the U.S logistics marketCoastandGulfportsattheport losses) there is the Amazon Effectticularlyinthemostcriti-there have been some notableexpenseofWestCoastportsForthereasonsFried- buildingnewlinksinthecallocationswhereoptions trends that are re-shaping thehas boosted interest in logisticsmannalludedtoportslikesupply chain. In May Amazonshould remain limitedsupply chain and in turn thereal estate around these growingSavannah,Houstonandopened its biggest warehouseIt is the limited options logistics real estate market.portcenters.ThelaborunrestDallas are now all hot logis- in New England in Windsor,for logistics real estate devel-SanJose,California-basedover contract talks on the Westticrealestatemarketareas.Connecticuta5-story3.8opmentthatisnowdriving AllegroRealEstateBro- Coast and other economic issuesForexample,inMay,Cen- millionsquarefootFulfill- themarketarealestate kers & Advisors, a commer- has helped make the decision toterPointreportedConstruc- mentCenter.Backin2020,nichethatisoutperforming cialrealestategroup,inainvest in the Gulf and East CoasttionisprogressingontheAmazon opened a 1.4 millionexpectations.CenterPointin recentGuidetoLogisticsmucheasier.AsPeterFried- secondofthreebuildingsatsquare foot First Mile Ful- theirreleaseontheirdevel-Estate Transactions, wrote inmann, executive director, Agri- CenterPointIndustrialCityfillmentCenterinDeltona,opmentnearPortNewark theiranalysisoftoptrends:culture Transportation CoalitionGardens in Garden City, GA.FloridaattheI-4Logistics(see above) shed some light Risingtrends,likethe(AGTC)explained,These The new facility will havePark. And in April the e-com- on why the logistics segment COVID-19pandemicanddecisions include where shouldunparalleled visibility in themercebehemothannouncedstillsimmerswhileother the expectation of same-daythewarehousebebuilt,wheremarket, sporting 1,200 feet ofit was going to build anothersegmentsoftherealestate delivery,continuetodisruptshouldthecoldstoragefacili- frontage on Dean Forest Rd.,First Mile Fulfillment Centerdevelopment have cooled off, establisheddistributionpat- ties be built, where should trans- the main artery to the Port ofacross the street.(DEMANDcontinued on ternsasmanufacturersandloadfacilitiesbebuilt?WestSavannahs Garden City Ter- Amazon, like other logis- page 24)otherindustrialcompanies have seen massive increases indemandforfasterdeliv-ery of goods and services. In turn, companies must expand theirlogisticsinfrastruc-turequicklytoallowthem to transport inventory where itsneededrapidlyandeffi-ciently.However,asware-housevacancyrateshave dropped, rental rates for what remainshavesurged.The demand for logistics proper-ties is likely to stay elevated for an extended period. No doubt one of the big impacts on logistics real estate istheriseine-commerce. Whilee-commercehasbeen growing for a decade, there is little doubt that COVID accel-erated the process. The need to locate goods closer to con-sumershasledtoademand for warehouse space near and in urban areas.customs brokers&freight forwardersChicago-based real estate firmJonesLangLaSalle, better known as JLL, in theirwww . jfmoran.com: 800.944.10412021Thefutureofglobal'