John Basile, Executive Vice President, Industrial Services, NAI Hiffman, tells GlobeSt.com that rising escalations are indicative of a market that was (is) extremely tight, with landlords able to push rates, in part, because of Amazon underwriting (outbidding) the whole market in recent years.
He said he also is seeing 3% property management fees on these higher prices, adding to the cost.
"The disconnect between tenants and landlords is ongoing," Basile said. "I'm having this discussion right now with clients. They hesitate to lock in a 10- or 15-year lease at 4%, saying we may be going into a recession, and Amazon's pullback should change pricing.
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