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Market research for a volatile industrial sector : Actionable methods for occupiers
Corporate Real Estate Journal,
14
(2),
123-136
(2024)
Abstract
The industrial market has undergone unprecedented upheaval over the past decade, especially during and after the COVID-19 pandemic. Industrial real estate has seen rapid shifts from undersupply to oversupply, causing pricing bubbles to form and burst quickly. While market research often adopts an investor or landlord perspective, this paper uniquely offers actionable methods from the occupier’s viewpoint. It aims to help corporate real estate (CRE) professionals evaluate their current facilities and leverage market conditions when acquiring new ones. By analysing key fundamentals — vacancy, rents, construction and absorption alongside lease comparable data and supply chain dynamics — readers will become educated consumers of market research, capable of appreciating nuances and asking the right questions when reviewing data and forecasts from brokerage or market research companies.
Keywords: industrial real estate; market research; demand forecasting; supply chain; lease comparables and effective rents; vacancy and availability metrics
The full article is available to subscribers to the journal.
Author's Biography
Mark Russo is a leading figure in the realm of commercial real estate data and insights, having launched his distinguished career in 2010. As the Vice President and Head of Industrial Research at Savills since 2021, he has been instrumental in transforming market understanding through his expertise in advanced analytics. His tenure at global organisations such as Newmark and LaSalle Investment Management has been marked by the development of innovative research platforms and forecasting models, thereby raising the bar in the industry. In his role at Savills, Mark’s mastery of big data is pivotal in steering industrial research initiatives across North America. He skilfully blends thorough analysis, market intelligence and thought leadership to produce meaningful insights. Leading a team of 15 researchers, he is committed to delivering accurate market tracking and enhancing collaboration within Savills global research teams. Under his leadership, Savills has introduced cutting-edge technology tools and platforms designed specifically for the industrial sector, including the Ports Report and Manufacturing Report, along with a comprehensive industrial market tracking system covering over 16bnft2. Mark’s professional journey is decorated with numerous accolades, including the notable GlobeSt Industrial Influencer award in 2022. His valuable contributions and insights are regularly featured in esteemed publications such as the Wall Street Journal and Forbes. He holds a Master’s degree in city and regional planning from Rutgers University and a BA in psychology from the University of Notre Dame.
J.C. Renshaw is the Head of Savills Supply Chain Consulting for North America and is based in the Savills Charleston, SC office. J.C. works with clients across industries to address issues and opportunities within their supply chain ranging from network strategy and optimisation to inside-the-box layout and flow, racking design, inventory management and operational efficiency, as well as capability maturity and performance opportunities. By working with clients to identify the specific needs and aspirations for their supply chain, J.C. can help in the following areas: identifying strategic and tactical solutions for network transformation and optimisation, improving costs, service, growth, performance management, technology, systems utilisation and optimisation, insource/outsource strategy and operational capability enhancements. Prior to joining Savills, J.C.’s accomplished background spanning over 35 years included consulting with Accenture and with other commercial real estate companies in supply chain strategy and operations management. He spent the first part of his career managing distribution centres and networks, as well as building and launching them while with The Home Depot’s Atlanta headquarters. J.C.’s real-world experience in distribution centre and manufacturing operations along with deep consulting expertise delivers a unique perspective that resonates with his clients.
Alison Baumann is the Director of Real Estate Intelligence at CompStak, the leading crowdsourced commercial real estate data platform in the US. Based in New York City, she leverages CompStak’s best-in-class transaction data to produce research reports and insights across the office, industrial and retail sectors. She also oversees the production of a monthly newsletter, delivering valuable market intelligence to industry professionals. Before joining CompStak, Alison served as an Associate Director of Research at Newmark, focusing on the New York City office market. She previously led research for the Alliance for Downtown New York, one of the city’s largest business improvement districts, dedicated to revitalising Lower Manhattan and attracting commercial tenants and development in the post-9/11 era. A proud New Jersey native, Alison earned her bachelor’s degree in art history and urban studies from Rutgers University. She later completed a master’s degree in city planning from the University of Pennsylvania, combining her academic background with practical experience in commercial real estate to offer unique insights into market trends and urban development.
