CPE’s August 2020 Must-Reads
- Sep 04, 2020
Although the U.S. continues to grapple with the spread of the coronavirus, the effects on the real estate market are less visible now than they were when the crisis started. While brick-and-mortar retail and hospitality are still disproportionately impacted by the pandemic, the industrial sector is expected to face a sharp yet short-term decline in absorption this quarter. According to the latest forecast from NAIOP, facilities not well-positioned for e-commerce distribution stand to feel the hardest burden. In August, we’ve also witnessed that as people continue to avoid large gatherings and spend more time shopping online than before the pandemic, industrial build-to-suit projects could represent a safe bet both for developers and investors.
So, it shouldn’t come as a surprise that a number of metros have witnessed an increase in industrial development. In metro Dallas, construction is progressing at a fast pace. Amazon revealed plans to establish a 1 million-square-foot fulfillment center in Forney, the third Texas facility the e-commerce giant has announced in recent weeks, in addition to its eighth Florida distribution center. A joint venture of Bandera Ventures and Invesco Real Estate secured financing for a nearly 1 million-square-foot project to be developed in Fort Worth. And in Haslet, JLL arranged a construction loan for Intermodal Commerce Park, an upcoming 1.4 million-square-foot project.
Meanwhile, Dunkin’ expects that 800 of its U.S. locations may close this year, following a July announcement that 450 locations within the Speedway convenience store and gas station chain could be shuttered. Additionally, Lord & Taylor revealed that it will permanently close five more locations than previously planned. The following week, news came that the country’s oldest department store was officially going out of business. Simon Property Group is taking notice, acquiring bankrupt retail brands, including a well-known jeans brand.
Here are CPE’s must-reads for last month: