• December 16, 2021

    The Masters of Urban and Regional Planning Students Land use planning class is holding a Community Exhibit 12/16/21 - Interrogating the Innovation District at the University Enterprise Labs.

    This semester students have been working arduously to develop 10 land use planning projects focused on reconsidering the notion of an innovation district.

    Thursday, December 16th from 6 to 8:30 pm

  • September 23, 2021

    Aquifer energy storage project wins financial backing of Mpls city council

  • August 16, 2021

    The Market at Malcolm Yards & O'Shaughnessy Distillery open

  • September 30, 2020

    Green 4th Street Enhancements Completed

  • June 30, 2020

    Metropolitan Council awards $100,000 grant for District Stormwater Phase II

  • September 01, 2019

    Towerside Innovation District Park complete


Today's Industrial Market: What's New?

August 20, 2018 by towersideadmin

The industrial segment looks dramatically different than it did even five short years ago. No longer the “ugly duckling” of commercial real estate, industrial leads the way as changes in technology, supply chain and consumer habits drive demand for industrial property. Industrial is no longer just warehouses and smokestacks. Today, industrial means high-wage, life science research and development jobs. As a result of the increased demand for industrial space, rent growth - which has been on the rise for the past six years - outpaced the three other commercial real estate sectors in 2017. Let’s take a closer look at what is driving industrial demand and the ripple effect it is having locally and beyond.

Drivers of Industrial Demand

The single biggest driver of industrial demand right now is e-commerce. According to the U.S. Census Bureau it accounts for 9.6% of total U.S. sales. Dubbed the Amazon effect, consumer demand for two-day and same-day delivery of goods from online retailers is prompting the development of distribution centers within close proximity to urban populations. As opposed to one large, rural warehouse, leading logistics facility provider GLP’s COO Chuck Sullivan states that “what [online retailers] are actually having to do is acquire a smaller warehouse or multiple smaller warehouses around these major markets.” This is putting a big squeeze on urban industrial space and vacant land.

Advances in technology also directly affect both users and service providers in the industrial segment. Some of these advances include: