The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
December 6, 2023
 Search RENTV
 The REview
News Home Page
Southern California
Northern California
Pacific Northwest
Prop. Management
Press Releases
 R. E. Marketplace
Service Providers
Property Spotlight
 RENTV  Conferences
Subscriber Login:
Forgot Password?

Printer-friendly Version   Email an Associate
Industrial Properties Command Rent Premiums in U.S. Airport Markets as Distribution Firms Prioritize Delivery Speed


This report was provided by CBRE

Distribution firms want to be close to major air hubs to expedite speedy deliveries, but there is often a price to pay: Industrial rent premiums average 13% in the top U.S. airport submarkets and reach as high as 47% in the Chicago O’Hare submarket, according to CBRE.

In the era of next-day delivery, third-party logistics firms, ecommerce companies and retailers are all vying for industrial space with proximity to major airports. Operators appear willing to pay a premium for this coveted, but limited, real estate to meet customer expectations of rapid order fulfillment.

The top airport submarkets by cargo volume garner rents above the local market average, according to new CBRE research. Los Angeles County’s South Bay and the Inland Empire’s Ontario submarkets are among the top 11 with substantial premiums at 12.9% and 12.2%, respectively. Third-party logistics firms are the main drivers of this activity, accounting for 29.6% of activity in major airport submarkets, followed by general retail and wholesale (24.4%) and pure-play e-commerce-only companies (16%).

“Speed has become a major competitive advantage for e-tailers,” said Executive Managing Director and Pacific Southwestern industrial & logistics market leader, Kurt Strasmann. “Being closer to the end user and therefore faster in servicing them has a big impact on market share. The result is that firms are willing to pay an often substantial premium to obtain this advantage. Industrial product adjacent to air cargo and port hubs will therefore continue to receive the benefit of increased pricing especially in submarkets servicing such significant metros as Greater L.A.”

Return to the Archive page



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2023 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media