Arie Salomon Shares Industrial Market Insights at NAIOP's 2022 Broker Forecast Breakfast
Arie Salomon, SIOR, CCIM was selected to speak at the NAIOP 2022 Broker Forecast Breakfast on November 17, 2021, where he shared his insight and market expertise on what’s in store in the industrial sector of commercial real estate for 2022. He spoke alongside three other local market experts: Eric Lonergan, Executive Managing Director at Savills; Laura Ford, Executive Vice President at Colliers; and Emily Frankland Associate Broker at JLL.
At the breakfast, Arie discussed various trends including the rapid increase in rental rates per year over the past 9 years vs. the slow rent growth that was experienced during the 1990's through 2000. From 2020 to 2021 there were 11.5 million square feet of industrial space added to the market, with about 15.5 million square feet in the construction stages and expected to be added by 2024. Along with the new industrial growth, he noted the record low CAP rates that are currently under 3.2%! With all the industrial growth over the past decade and the demand for warehouse space along accessible distribution routes, he has seen a trend for large warehouse buildings over 500,000 square feet to be constructed along the I-5 corridor in Pierce, Thurston, and Lewis Counties.
Average industrial rental rates for Class A & B spaces (50,000 - 100,000 SF) from 2008 to 2021.
Average industrial rental rates for South King County / North Pierce County from 1990 to 1999.
NAIOP Washington State Chapter’s mission is to create a favorable climate for the conduct of commercial real estate through the participation of a professionally diverse membership and to be recognized as the foremost commercial real estate association in Washington.
We are grateful for their dedication to gathering commercial real estate professionals to share their market knowledge for a better understanding of what’s to come.