The growth of e-commerce has increased demand for warehouse space exponentially, but one subset of that real estate sector is really heating up. Cold storage warehouses and distribution centers are suddenly in high demand thanks to new food delivery services such as Peapod by Giant, Amazon Fresh and Blue Apron.
The sector is small now, but growing rapidly.
Bridge Development Partners, one of South Florida’s most active industrial real estate developers, announced the sale of Bridge Point Riverbend.
ASB Capital Management purchased the 221,815-square-foot industrial facility, located at 201 Northwest 22nd Avenue in Fort Lauderdale for $38.2 million. The price equates to $172 per square foot.
Commercial real estate prices should even out by 2020, according to the chief economist of the National Association of Realtors.
Dr. Lawrence Yun was one of the speakers at the commercial economic issues and trends forum at the Realtors Legislative Meetings & Trade Expo.
“We may see commercial real estate prices rise for the next year, but I expect them to even out in 2020,” Yun said. “Capital gain returns have grown from 90% with the rise in property prices. We can attribute the growth in commercial building investment spending to job additions and rising occupancy of buildings.”