JLL’s own Trevor Ragsdale (left) is moderating a panel discussion at today’s BisNow Industrial Summit that also includes CenterPoint Properties’ Jim Clewlow, Venture One Real Estate’s Mark Goode, KTR Capital Partners’ Ryan Stoller and Sitex Group’s Cary Goldman.
Here’s a live run-down of the proceedings:
8:15 a.m. Goldman: “We’ve had manufacturers from various industries come into our facilities and have seen many other existing manufacturers growing. There’s a general sense of optimism.”
8:16 a.m. Goode: “We’re seeing deals and companies making deals quicker because there’s less supply than there was a few years ago and the demand is better.”
8:19 a.m. Goldman on the buy-vs-own calculus: “The low interest rates combined with SBA financing makes it more beneficial (for some smaller users) to buy a building.”
8:21 a.m. — Stoller on what lawmakers can do to bring more manufacturing jobs to Illinois: “Illinois is not really participating in e-commerce (distribution). Those users will go to Louisville or they’ll go to Indianapolis. Hopefully the national sales tax will help change that.”
8:25 a.m. Goode: “Our problem in Illinois is the people in Springfield who need to figure out that they need to help us a little bit.”
8:28 a.m. Clewlow: “Our tea leaves tell us that Madigan and Cullerton are going to come together and pass pension reform. I think things are moving ahead and that will make an impact.”
8:30 a.m. Goode: “The Midwest is like the Southeast. They know how to make things and they like manufacturing. So companies are always going to bring manufacturing here.”
8:32 a.m. Clewlow on southeast Wisconsin: “What we’ve seen is that distributors are moving south and out of Milwaukee near the state line. I think you’re going to more of that from anyone who’s supply-chain oriented.”
8:34 a.m. Stoller on investor interest in B-class industrial product: “I think you’re going to see more of it. What’s changed is that the capital markets are more aggressive and the cap rates for A are falling. Plus, the fundamentals for B are improving.”
8:36 a.m. Goldman on whether value-add investors are seeing opportunities: “In virtually every market, every building is value-add in some way. There’s so much mature product. There are going to be millions and millions of square feet that need value add, so I’m very optimistic.”
8:39 a.m. Goldman on the local brokerage community: “I think there’s an elevated sophistication with the transaction brokers. I think we’ve become a very efficient market.”
8:45 a.m. Clewlow’s prediction for the rest of 2013 and beyond: “Illinois could very well be the next frontier for fracking. That’s something to keep an eye on.”
8:47 a.m. Goode’s prediction: “I think you’re going to see more construction … Build-to-suit and spec development.”
8:48 a.m. Goldman’s predictions: “I’m starting to drink the kool-aide that Rey rates are going to start to rise.”
8:49 a.m. Stoller’s predictions: “E-commerce is such a huge driver of warehouse leasing across the US and we haven’t yet seen that in Illinois, but that’s going to change if the tax issues are settled.”
8:50 a.m. Goode on the lending climate: “Banks are looking to get money out for the right deals.”
