In Q2 2018, the U.S. industrial & logistics (I&L) sector continued to demonstrate strong fundamentals and are expected to maintain their strength through the year-end as the overall economy remains robust, according to CBRE. Job growth remains strong in trade, logistics, and transportation. Elion has a number of industrial properties which support the growth and wellbeing of local jobs and communities. Elion’s RidgePort Logistics Center provides unprecedented wellness amenities for the local workforce and professional truckers. RidgePort also offers enhanced logistics solutions for companies with ecommerce distribution needs. This is an increasingly important component of any industrial facility, as consumer spending rebounded sharply in Q2 following a slow first quarter, driven largely by e-commerce spending. As consumer demand continues to move towards e-commerce, the need for full-service and efficient logistics centers is growing, and Elion is well-positioned to support the market.
This quarter the rent market also showed signs of strength, as net asking rents increased 1.7% in Q2 to $7.11 per sq. ft. Rents increased 5.5% year-over-year, exceeding the average annual growth rate of 4.1% since 2012. As demand exceeds supply, developers in constrained markets are willing to explore site remediation as the costs can be recovered through higher rents than past years. In conjunction, tenants are seeking more efficient layouts, such as adequate truck-court depths.
Elion carefully observes these trends and offers industrial properties with best-in-class logistics solutions and seamless transportation opportunities. In addition to RidgePort, Elion’s Miami-Dade and Broward Industrial Properties, infill industrial development Bridge Point Riverbend, and DC Industrial Portfolio meet demands for new logistics requirements as well as offer access to high-population centers, distribution centers, and quality labor. Elion continues to monitor quarterly trends against its investment strategy to further support sound investment decisions.