Consumption, Construction and Cold Storage
NAI Hiffman Executive Vice President Kelly Disser delved into the challenges and market conditions related to the cold storage real estate market in this RE Journals article by Mia Goulart. Kelly discussed the myriad factors influencing volatile pricing and driving continued activity in the cold storage sector.
“It remains to be seen, whether construction pricing will come back down,” Disser explained. “It is always hard to predict – but the recent increases and new levels create even more uncertainty. Demand is strong and clients who occupy these buildings continue to have record years, but heightened costs and supply chain concerns leave many questions unanswered. While it is very early (in regard to this change) we are starting to hear that some line item costs may start to come down, even if slightly, given some large projects which have recently been put on hold. Interest rate increases cause the cost of nearly everything to be more expensive – directly or indirectly, and those changes in valuations in the equity markets now as well. Put all that together, and there are more questions regarding the supply chain and broader economy now, in fact, than there were six months ago.”
Read the full article at RE Journals.