Chin : I expect to see four key trends that will continue to impact this sector :
• The sustained rise of ecommerce
• Top priority given to speed-to-customer
• The escalating use of technology to improve efficiencies : automation and data-driven predictive analysis
• An emphasis on sustainable practices .
Louie : 2024 will be a year of transition to the high-interest rate environment that will be here to stay .
Gonzalez : Leasing over owning . The flexibility enjoyed , lower capital expenditures and higher quality space for the money will continue to push many companies to lease versus own their sites .
CLDA Mag : What trends will be less impactful ?
Benko : Many of the leases negotiated in the last five years that included extensions and favorable terms for tenants are expiring , and landlords are less likely to agree to these extensions in the future . If they do , they ’ ll direct the new rate towards fair market pricing to protect themselves from being locked into below-market pricing .
Gonzalez : Companies that look to purchase property may do so with less competition from deep-pocketed investment entities and private equity funds . This is because many funds are on a slower growth strategy than they were .
CLDA Mag : What else should we cover to help our readers plan for their real estate needs in 2024 ?
Gonzalez : One thing to look out for is the strategic positioning of assets , namely the ingress and egress of delivery vehicles . Municipalities are pushing back on idling trucks due to emissions concerns and the perceived impact on street parking .
Benko : I suggest working with a real estate broker who can dissect your lease and all the terms and conditions with an electronic platform . This will provide you with better visibility and filter any needs or requirements ( such as term dates , rates and extensions ). These subject matter experts can help you get the best deal available .
Chin : Every market is different . Consult with your local real estate professional for advice . CLDA
Competition for space will remain steady , if not strong , given a slowdown in the development of new inventory due to the high cost of debt and construction costs .”
FALL 2023 I customized logistics & delivery Magazine 49