Have you ever heard this term used in CRE before???
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[{"id": "hifcd67", "text": "It's gets scary when buildings are priced higher than new construction due to time constraints.", "replies": [], "depth": 1}, {"id": "hifl4xw", "text": "I can already hear industrial owners crying about their tax bills next year \ud83e\udd72", "replies": [], "depth": 1}, {"id": "hifpijp", "text": "Chicago industrial has hit all time low in vacancy but it\u2019s still 4-5%. But if you\u2019re looking for class A space it\u2019s probably closer to zero. And there\u2019s a ton of BTS and spec in the pipeline coming soon", "replies": [], "depth": 1}, {"id": "hifw9oh", "text": "The pandemic increased the need for industrial and mix use space.  The demand for ghost kitchens and stores skyrocketed.  I just finalized a lease with a ghost grocery warehouse.", "replies": [{"id": "hig47rx", "text": "That\u2019s actually pretty fascinating. Would love to hear more about it.", "replies": [{"id": "higkjw1", "text": "Ghost kitchens are a hot item in our area.  I've been getting calls for nearly 2 years asking if I have any available. They have no interest in making products for retail clients.  This is delivery only.", "replies": [{"id": "hii1cx3", "text": "Do they typically take vacant retail? Or is it more flex space with higher ceilings?", "replies": [{"id": "hii91wa", "text": "I'm actually not sure.  The requests to my office have been for existing restaurant quality kitchen space....so...they were looking for built out space that I suspect they were convinced may be difficult to lease in this environment.\n\nUnderstandable considering all the restaurants the govt. has put out of business. But, unfortunately, all my restaurant product was occupied.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hijalva", "text": "Due to the increase in food and grocery delivery, most companies do not deliver out of an existing location.  Last year I leased a 8000sqft space to a restaurant group who operates six different restaurants in my area.  They use it to cook delivery orders only.\n\nMy recent lease was with a NYC based grocery delivery service.  So many people are used to having food delivered, even when the pandemic calmed down they maintain the service.  It's not going away.  People are used to ordering basic groceries online.  Same for cooked food delivery.\n\nIt's more cost effective to run a kitchen out of a $25/sqft warehouse versus $65/sqft restaurant.  Build out is less, insurance is less, etc.", "replies": [{"id": "hijcumd", "text": "That\u2019s awesome. I work in traditional industrial (bulk warehouse/logistics) but the converging of the retail and industrial spaces really intrigued me. If you wouldn\u2019t mind could I send you a PM to learn more? Based on your username and past comments I think I\u2019m a stones throw away from your market", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hifxhh5", "text": "This is essentially the case in the Toronto market. Sub 1% vacancy. 18M sf expected to be absorbed this year. Most 2022 projects are spoken for.", "replies": [], "depth": 1}, {"id": "hifzwbj", "text": "Prologis came out with their earnings and that is where the term came from. Their occupancy is at 97%. If you need space and don\u2019t have it, going to suck.", "replies": [], "depth": 1}, {"id": "hig8lxe", "text": "You're not anywhere near Denver are you?  Having some trouble finding a new tenant for a 10k sqft warehouse/industrial building with a decently large office in Broomfield since our tenant that was in there went out of business", "replies": [{"id": "higa244", "text": "Send me a message I may have someone that\u2019d be a fit!", "replies": [], "depth": 2}, {"id": "hih0goi", "text": "Unfortunately not - on the East Coast", "replies": [], "depth": 2}], "depth": 1}, {"id": "higkdaa", "text": "It's hardly new.  The industrial market is on fire across the country.  One of the reasons for the ports being so backlogged is, the national average vacancy rate in industrial space is approx. 2%. There's no place to put these products.  In many cases, the inventory is simply staying in the TEU's and only leaving them to be shipped out straight to end users.\n\nBuildings in the Seattle market are regularly coming to market, 75 and 90% leased.  These are 500,000 and 1.5 million sf products.", "replies": [], "depth": 1}, {"id": "hiiv3cu", "text": "I have been looking at commercial realstate for a while and available rental properties are low but I think it is due them not being listed. I see lots of properties that are empty but not om the marked. Question is why? I think it is to keep the price of rental higher", "replies": [{"id": "hiiw3rc", "text": "Yeah, there are definitely vacancies out there - but there are major factors that play into this.\n\n Depending on the asset class (office, retail, industrial) you will see higher vacancies in office &amp; retail compared to industrial. \n\nThis is also largely dependent on the LL's situation, I've seen properties sit vacant for 2 years because the LL doesn't care. This one unit/property isn't going to change their life. Also, some LL's let emotion take over &amp; don't want to budge on their price. \n\nAnother important factor is location, if you're in the middle of bumble f\\*\\*\\*: the turnover between tenants is x10 longer than that of a major/sub market", "replies": [], "depth": 2}], "depth": 1}]