Industrial real estate owners are smiling right now.
At the close of the third quarter, the industrial market broke “every” U.S. record. Vacancy is at 3.6% and 450 million square feet is under construction with 1/3 of that pre-leased, while 300 million square feet has been absorbed already in 2021.
Industrial development has been a key component of our business for some time. Unlike other fair-weather investor-developers who are chasing a hot market, Mohr Capital has been working with corporate users to build or occupy industrial facilities for more than 20 years.
Our experience sets us apart – as well as a single source of capital that allows us to move quickly to get out of the ground while demand remains high. When it comes to our track record, we let our long history of development do the talking.
However, beyond the pandemic’s impact on the sector, I also think it’s important for us to share our knowledge with industry colleagues and corporate users on other variables impacting industrial development like land prices and availability, the risks of acquiring unimproved sites, the trend toward tilt-wall construction, and how “user” friendly right-turn-only sites with expansive trailer parking are all the rage.
For our “tenant-side” partners, market rents seem to be increasing by 10% throughout the country, so quicker decisions and long-range planning will be required to control occupancy cost. This is especially true as the supply chain problems will take a year or more to work their way through the system.
Insight like this can only come from long-time industrial professionals. To expand on this effort, Mohr Capital has also launched a dedicated land acquisitions team to push development efforts into overdrive with prospects in Reno and Fernley, NV, Phoenix, Indianapolis, Dallas and Ohio.
Until then, Mohr Capital is well-positioned to take advantage of the industrial real estate segment and to monetize these opportunities for our corporate clients.
Founder & Chairman
The Hunt for Land
In August, Mohr Capital brought on an experienced land pro, Lee Loftis, to head up our land acquisitions practice. A month later, we grew that team, welcoming analyst Carson Horn to work with Lee to identify, entitle and close on land sites in key markets, including Dallas, Austin, Columbus, Savannah, Charleston, Charlotte, Lakeland and Phoenix.
A User on the Cutting Edge
In September, we secured a lease extension and expansion with Arrive Logistics at our MetCenter flex space in Austin. The facility serves as headquarters for the leading Austin-based freight brokerage, and as part of its long-term growth plans, we worked with Arrive to expand its occupancy from 78,000 SF to 116,000 SF through December 2031.
Talking Industrial with the King
Also in September, I sat down with Clayton King of King Capital to talk about how Mohr Capital has managed to thrive during the pandemic when many CRE firms have struggled. We also dived into the state of retail, industrial and office segments, and I shared my take on what’s currently impacting each segment and what the future holds.
Keeping Pace in Indianapolis
The industrial market in Indianapolis is growing at a record-setting pace, and it’s also home to Mohr Logistics Park, a 475+ acre master-planned industrial park. I recently spoke with Mickey Shuey of the Indianapolis Business Journal to give an update on our park and discuss why companies are turning to Indianapolis to satisfy their need for more space.
Setting the Stage in Dallas
In early November, I joined CBRE's Jack Fraker, Hillwood Properties' Tom Fishman, and Dalfen Industrial's Sean Dalfen to discuss trends shaping the industrial market in Dallas and across the nation. The panel session was part of Bisnow's DFW Industrial and Logistics Outlook, and I enjoyed the lively discussion with my fellow panelists, as well as hearing from other DFW-area industrial players.