Here is why CA South is so bullish regarding the development of well-located industrial development projects;
“Companies searching the market for warehouse space in Nashville face fierce competition, especially for modern bulk products. While the vacancy rate hovers around 4%, the effective availability is even lower. The market experienced roughly 2.5 million s.f.of absorptions in Q1, and 3 million s.f.of signed deals are scheduled to commence before the end of the year. Combined with deals yet to be closed, Nashville may see a staggering 6 to 7 million s.f.of net absorption in 2022. Wilson County continues to lead in new construction, leasing, and absorption. The submarket holds a 53% share of the total leasing volume in the market over the past 15 months. Despite cold weather and supply chain difficulties, developers broke ground on over 3 million s.f.of warehouse space between January and March. Another 5 million s.f.of proposed projects are waiting to start, many of which face delays due to unavailable construction materials. Even with this historic amount of inventory in the construction pipeline, the market could support more development if investors could find more land zoned for industrial use. Buyers also find themselves competing with multifamily and retail projects for available land. These constraints to supply combined with record demand have driven the average asking rate up to $6.31 p.s.f.”
– JLL Industrial Insight Q1 2022