Sound Bites from NAIOP’s I.con: The Industrial Conference in Los Angeles
On where to build new e-commerce distribution facilities: “Stay in markets where the people are; invest in markets where the people will be.” Curtis Spencer, president, IMS Worldwide, Inc. (For more on this topic, see “Five Trends in the Ongoing Evolution of E-Commerce.”)
Dissecting the current industrial market: “Over the past 12 months, there has been some [materials] price creep. Where you are really seeing costs go up is in the hidden fees from the cities, and I don’t know where that will stop.” John Magness, senior vice president/director, Hillwood Investment Properties.
Is there still a place in the market for small, entrepreneurial developers? “There are always those unique transactions that one person can do with a couple of associates. These are not high-volume or high-leverage type projects; instead, they are the 100,000-square-foot rehab, infill project where it is possible to make $20 or $30 per square foot. I think that business is always going to be there.” Kim Snyder, president, Southwest Region, Prologis. (For more, see “Industrial Opportunities for Smaller Entrepreneurial Developers.”)
On transportation: “Transportation has changed the world. Since 1970, the U.S. population has roughly doubled, but transportation is up 10,000 percent. The world has changed; we want what we want when we want it. Economies matter; economics matters, so companies make sure you get the goods and services you want the best way.” Curtis Magleby, senior managing director regional head, U.S. Capital Markets West, Cushman & Wakefield. (For more, see “Four Trends Spurring Growth in Inland Ports.”)
On CIOs’ biggest concerns: “When do we stop [developing new projects]? We all know when to start and keep going, but when do we stop and why do we stop? In the REIT world, one of the things that you are scored on is your ability to have the discipline to do that … to stop.” Jeff Phelan, president, DCT Industrial Trust. (See “Key Topics in the Boardroom.”)