The commercial real estate firm CBRE says 14 markets in the United States stand out as strategic options for industrial real estate investors who seek growth opportunities outside of primary markets.
These strategic markets have generated demand for industrial and logistics real estate that outpaced their supply by a collective 89 million square feet since 2013. In the same span, their industrial rents have increased by an average of 25.2%.
“The Industrial & Logistics sector continues to generate strong momentum with the growth of e- commerce and a healthy U.S. economy, but opportunities vary depending on geography, asset type and other factors,” says Jack Fraker, vice chairman and managing director of CBRE Global Industrial & Logistics.
“Investors seeking higher yields can find them in several markets still hitting their stride as hubs. These markets offer the infrastructure, labor availability, connectivity to major ports, and the real estate fundamentals needed to support strong growth going forward.”
Leading these strategic markets are seven that report industrial vacancy rates below or only slightly above the national average (4.3%) as well as aggregate rent growth of 6.1% in the past year: Las Vegas and Reno, NV, Salt Lake City, Milwaukee, St. Louis, El Paso, Texas, and Detroit.
The other seven offered more new leasing opportunities stemming from construction completions and generated an average rent increase of 5.6%: Greenville-Spartanburg, SC; Dayton, OH; San Antonio; Savannah, GA; Central Valley, CA, Northeastern Pennsylvania; and Phoenix.
CBRE selected these strategic markets after polling its Industrial & Logistics Capital Markets teams about which markets represent emerging opportunities and opportunities for yield for investors. Some, like Detroit and Phoenix, are primary markets in terms of population but still are coming into their own as hubs of industrial and logistics real estate, the company notes.
<h2>Student Athletes Not Employees</h2>
A federal appeals court with a reputation for being liberal ruled that a student athlete at a university is not an employee and cannot join a union as one.
In a suit involving former University of Southern California football player Lamar Dawson, the Ninth Circuit U.S. Court of Appeals held that student-athletes are not employees of either the National Collegiate Athletic Association or the Pac-12 Conference, the regulatory bodies that govern college sports.
“Dawson provides useful insight into how the Ninth Circuit applies the sometimes amorphous FLSA ‘economic realities,’ test,” observe attorneys for the law firm of Seyfarth Shaw. “It remains to be seen what impact Dawson will have on other efforts to challenge the status of student-athletes.”
Dawson had sued the NCAA and the Pac-12, claiming that he and other Division I athletes were employees for purposes of California and federal law. He had sought unpaid overtime and back wages, interest and unspecified damages under the federal Fair Labor Standards Act.
While he sued the NCAA and Pac-12, Dawson did not choose to sue USC itself. As it turned out, the Ninth Circuit held that Dawson’s scholarship did not create an expectation that he would receive compensation from the NCAA or the Pac-12, because he did not receive his scholarship from either one of them.
The court said the regulation limiting scholarship compensation to the cost of attendance did not create any expectation of additional payment. In addition, it found that neither the NCAA nor the Pac-12 had the ability to hire or fire Dawson.
The court also rejected an additional claim that the NCAA and the Pac-12 were Dawson’s employers under California law. - Lamar Dawson
<h2>Trucking Growth Strong to 2030</h2>
American Trucking Associations released the ATA Freight Transportation Forecast: 2019 to 2030, which provides annual projections for the freight economy, predicting that truck tonnage will continue to grow by more than 26% into 2030.
“America’s trucking industry, and the overall freight transportation industry, are poised to experience strong growth over the next decade as the country’s economy and population grow,” said ATA Chief Economist Bob Costello.
“Our annual Freight Forecast is a valuable look at where we are headed so leaders in business and government can make important decisions about investments and policy.”
Among the findings found in this year’s forecast:
• Overall freight tonnage will grow to 20.6 billion tons in 2030, which is up 25.6% from 2019’s projection of 16.4 billion tons.
• Freight industry revenues are seen increasing 53.8% to $1.601 trillion over the next decade.
• Trucking’s share of total freight tonnage will dip to 68.8% in 2030 from 71.1% this year, even as tonnage grows to 14.2 billion tons in 2030 from 11.7 billion tons this year.
• Trucking and total rail transportation will lose relative market share, even as revenues and tonnage grows, while intermodal rail, air and domestic waterborne transportation will show modest growth. Pipeline transportation is seen experiencing explosive growth – surging 17.1% in tonnage and 8.6% in revenue over the next decade.
“The Freight Forecast clearly lays out why meeting challenges like infrastructure and workforce development are so critical to our industry’s success,” observes ATA President Chris Spear