With EV manufacturers and their suppliers increasingly opening factories in the U.S., opportunities are growing for both build-to-suit construction and speculative development.
As sellers become more concerned about marketing a property that fails to sell, it has opened up more opportunities for investors looking for off-market acquisitions.
The Commercial Property Assessed Clean Energy program loans offer fixed-rate long-term financing at reasonable rates for projects that meet water and energy use improvement requirements.
Appraisal business is down, as investment sales activity and refinancing deals have declined. Now, appraisers must rely on supplemental data to make value assessments.
The sector continues to be viewed favorably in the marketplace. But potential returns are lower, leading to a reassessment by debt and equity investors.
Lenders tend to be cautious on such projects and most investors might be looking
for returns that are higher than office building prices right now would support.
Investors in the sector have been more reluctant to close deals as the cost of
capital rises. But given a strong outlook for income growth, many acquisitions
are still going through.
While rising inflation and weaker consumer spending are having an impact on
industrial property fundamentals, the comparisons are to record highs in
occupancy and rent growth.
Lower energy costs, supply chain issues and political volatility are some of the
issues behind European companies’ decisions to open new manufacturing plants in
the United States.