Industrial Insights - CoStar

[Nick Maugeri]

Most of the largest cities in the Midwest, including Chicago, Detroit, Indianapolis and Minneapolis, rank in the middle of the pack. Geographic and infrastructure advantages support leasing by small manufacturing and distribution tenants in these locations.

However, limited population growth, or in some cases population losses, result in less robust leasing among smaller tenants in local construction trades. Similar headwinds weigh on leasing in other middle-ranking markets such as New York City and California’s East Bay.

[Brock Mogensen]

Love this! 20k-150k sq ft Class-B Industrial in Tier 2 markets is the investment I am most bullish on. They are not building this, and the tenant demand continues to increase.