The three markets--Columbus, Tampa and Savannah--named in the study with big increases in industrial demand are key areas for retailers. Columbus, where demand has “exploded,” is within one day’s drive from 50% of the U.S. population--making it an attractive market for fulfilling online orders and shipping inventory.
“More and more 'out of market' developers are scouring the region for sites to develop,” the report said. “Part of the increase in demand is COVID-19-related, but there’s more going on. It’s more about the cost and logistical advantages of Columbus—you can reach almost half of the U.S. population within a day’s truck drive of Columbus.”
Tampa, which is seeing a housing shortage amid a tightening market, is experiencing a construction boost. The migration of people to the area is playing a role in the warehouse space demand, the report found. Tampa is one of the top growth markets in terms of population over the last five years.
Similarly, Savannah’s population has been rising, creating more tenant demand, “which is tied to port activity,” CSA reported. From 2020 to 2021, demand grew by nearly 10 million square feet.
“As the Southern California ports experience unprecedented congestion, port markets like Savannah (alongside Houston in the South and Oakland and the Northwest Seaport Alliance up the West Coast) are seeing a surge in Industrial demand, as tenants set up warehouse and distribution space to receive more product from more varied seaport locations,” JLL wrote.
See the full story at Chain Store Age.