PARK CITY, UT—Supply chain disruptors can be expensive, especially if you are looking to build now. That is according to Geri Borger Urgo, head of production at NewPoint Real Estate Capital.
Borger served as a panelist during a recent Mega Session, which brought together industry experts to discuss macro and micro trends in different property types, at the national GlobeSt.com Women of Influence conference here in Park City, UT.
“What is coming online is going to be expensive and you will have to have a lot of equity due to disruptors,” explained Borger. “The impact will be on the renter.”
Panelists then discussed affordability and at what point it is feasible for an average renter to afford a home and a place to live. “The increased cost is going to put more pressure on that,” said Borger. “The biggest impact you are going to see is an expanded affordability crisis.”
In the industrial space, Amanda Ortiz, national director of industrial research at Colliers, said that rents have also increased in many of the port markets. “Year over year, inbound port container volume has increased and we will see more activity in other markets for port activity. We also have 600 million square feet under construction, which will come online in the next 18 months.”
She added that in the industrial market, there have also been new initiatives for sustainability. She also is starting to see new demands from tenants in the space, such as multi-story industrial builds.
Moderator Carmen Decker, president of the Western Region at Kimco Realty, said that sustainability is really being demanded from investors and analysts. “We have to pay more attention to the impact that our shopping centers are having on the environment.”
According to Decker, Kimco has invested in things like LED lighting, watering systems and also hired an ESG director who is working to expand not just how Kimco is implementing sustainable practices in its shopping centers, but also how they can better work with the tenants in those centers to implement it as well.
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