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The 2014 industrial real estate forecast highlights a positive outlook for the industrial market, particularly in the Louisville MSA. Confidence is rising, leading to dropping cap rates and increased property values. The market's recovery from the 2001 recession has been notable, showing rapid growth over 2012 and 2013. Brokers report high interest in properties, with traffic levels indicating successful leasing and sales, especially in flex and warehouse spaces. This report analyzes key characteristics of industrial distribution spaces and regional employment trends.
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Regional Economic Trends by Type Industrial Space – Cap Rates This market is doing well. Rates are dropping due to the confidence in this market and these products relative to alternate investments. Lower rates mean higher values. I3
Louisville MSA Market Performance Overall this leading indicator says the industrial market locally is doing well and will do well in 2014. The rise in 2012 & 2013 exceeds the 2001 recession recovery in magnitude and in a shorter time frame. I4
Louisville Broker Opinion – Market Performance A local measure of interest is the level of traffic visiting a property and the success in sell or leasing to visitors reported by brokers, agents, and owners for flex and warehouse space. Perfect score is 10. I5
Pertinent Characteristics of Industrial Distribution Space I6
Louisville 2012 and 2013 Industrial Rent Performance 2012 2013 I8
Pertinent Characteristic of Industrial Distribution Vacant Land in Industrial or Business Parks I10