Roy Splansky, SIOR, principal with Venture One recently shared his insights during a panel at SIOR’s Spring 2023 Event in Montreal. Titled “Thriving in the New Abnormal”, the discussion focused on how industrial markets are still strong and active despite signs of change on the horizon. Splansky cited 3M’s recent announcement of layoffs as an example of this shift and recalled that when similar market conditions occurred 15 years ago, 3M canceled a one-million-square-foot industrial project Venture One was developing for it.
Moderator Hagood Morrison set the stage by citing data from Cushman & Wakefield which showed transaction volume for new industrial leases is down 40% from a year ago; S&P reported U.S bankruptcies were up over twice as much compared to last month; The Wall Street Journal stated building values were down 12%; Morgan Stanley reported commercial real estate debt maturities totaled $2.5 trillion over next year – all higher than previous five years combined yet audience members remained optimistic according to Splansky who added that Chicago based Venture One remains acquisitive and currently raising its sixth fund with activity coming mainly from users wanting to own rather than large scale distribution projects .
A real estate finance lead noted volatility was biggest issue impacting deal volume while Michael Maroon ,SIOR ,an Industrial specialist with Acclaim Group said getting deals done is more complicated due to landlords lagging behind current market realities but tenants can benefit if they have time before needing space since rates won’t plunge significantly . He concluded senior practitioners speaking directly with CEOs/CFOs are needed now more than ever given their ability provide advice beyond just paying bigger numbers going forward .
