Posted by: Paul Perkins, CCIM, SIOR
Industrial Properties Group
For instance, in the subject article comments like "There was less overbuilding in the industrial sector" made me chuckle. The Reno/Sparks market saw a you-know-what load of overbuilding during 2005-2007, particularly from developers new to the area using OPM. Some of us ruminated about the consequences of this unbridled construction in the face of historic absorption, but we're just brokers...what did we know. The resulting 15.5%+ vacancy rate that resulted is the highest ever recorded and devastated industrial construction; the Associated General Contractors named the Reno/Sparks area the hardest hit in the nation.
The article does reference individual markets...Houston, Dallas and Los Angeles to name a few, but these are primary markets and, although they may represent a portent of things to come, they have totally different dynamics than Reno/Sparks. Nonetheless, although the article doesn't reflect conditions here, we can hope it is a portent of a brightening global picture, which eventually will filter down to our little corner of the world."