No Such Thing As Obsolete, Strong Demand Keeps Warehouses Filled Regardless of Age
News, Real Estate | April 15, 2020
CoStar Insight: Why Older, Functionally Challenged Industrial Assets Continue To Outperform Despite Deluge of New Supply
With more than 320 million square feet of under construction warehouse and distribution space looming in the pipeline, investors might be forgiven for casting a skeptical eye over the ability of decades-old warehouses to retain their value. Hampered by low clear ceiling heights and often given the dismissive tagline of “obsolete space,” these dated properties would appear to be prime redevelopment targets.
Modern industrial properties routinely feature clear heights well above 30 feet and, more often than not, stretch to 40 feet, a prerequisite for the enormous racking systems used by national brands and e-commerce tenants with far-reaching supply chain needs and cutting-edge distribution operations…Read More