Industrial development in the Midwest is burgeoning, and REBusinessOnline cites e-commerce as one of the driving forces. A feature article on the trend highlights the nearly 21.3 million square feet of industrial completions and more than 23.5 million square feet under construction in the region.
Duke Realty Executive Vice President for the Central Region Steve Schnur calls the current industrial market strong throughout the United States but says in the article that the Midwest is among those regions where development is showing big returns. The company, he says, has therefore been focused on development rather than acquisitions.
“The reason for this is that the margins and spreads are much better in development than acquisitions right now,” says Schnur in the article. “The acquisition markets, because of the availability of capital, are very frothy right now.”
Duke Realty’s continued industrial focus has benefited from significant growth in e-commerce, which, as Schnur points out in the article, doesn’t just come from the 400-pound gorillas in the segment: “Nearly every consumer business and many business-to-business suppliers are re-examining their supply chain and logistics strategy to stay in front of e-commerce.”
The new Bon-Ton Stores distribution center, a Duke Realty project near Columbus, Ohio, is highlighted as an example of a store with a national presence growing via a midwestern facility.
“We pride ourselves on the quality of our portfolio and our tenant base,” says Schnur in the article. “We will continue to stay disciplined and focus on maximizing value for our shareholders. Commercial real estate is a capital-intensive business, and we think this is a competitive advantage for us as a large public company.”
Read the full text here.