Overbuilding Commercial Industrial
I noticed 3 years ago various new commercial industrial buildings being built and left vacant. Many still vacant today. Beautifully maintained but again vacant. Over the past year to today every vacant lot has enormous 1 million sq ft plus commercial-industrial being built on it at record pace, but still no customers. I mean no one renting the space. How do you explain?
[{"id": "e5m7ifv", "text": "Which market?", "replies": [{"id": "e5makxa", "text": "That\u2019s the question. They can\u2019t build it fast enough in Southern California. ", "replies": [{"id": "e5mdn73", "text": "I live in North San Diego county and there are tons of vacancies around me. Especially in office and mixed use. ", "replies": [{"id": "e5otrgz", "text": "Office has been weak outside of CBD for a lot of markets. Suburban has been doing decent in my market (South Florida) but not like it used to be. CBD office on the other hand has been doing crazy well almost everywhere ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "e5mdipl", "text": "Oh we are trying, 19 million or more under construction. ", "replies": [], "depth": 2}, {"id": "e5nr8s1", "text": "Chicagoland Area", "replies": [], "depth": 2}], "depth": 1}, {"id": "e5mb25p", "text": "What market are you in?  They're definitely getting leased up in my market", "replies": [{"id": "e5nradi", "text": "Chicagoland Area. It\u2019s almost eerie, how few are occupied. And if a building gets a tenant it leave another older building empty.", "replies": [], "depth": 2}], "depth": 1}, {"id": "e5mjjgx", "text": "Real Estate is local... hot here", "replies": [], "depth": 1}, {"id": "e5mn4pa", "text": "That's called a [speculative build](https://www.allbusiness.com/barrons_dictionary/dictionary-speculative-building-4957499-1.html).  It's risky, especially for industrial space.  The other end of the spectrum is build-to-suit, where a tenant has signed the lease before breaking ground.\n\nAlso consider that the building might actually be leased but the tenant hasn't occupied it due to temporary delays or permanent shifts in their business.  This happens sometimes with big national tenants.  They still pay rent.  Home Depot owned a big empty building in my area for over a decade before they sold it to an office developer.", "replies": [], "depth": 1}]