Top 5 Predictions for Fulfillment Centers in 2015

Top 5 Predictions for Fulfillment Centers in 2015

For the fulfillment center sub-sector in 2015, Matthew E. Galligan, president of CIT Real Estate Finance, a New York City-based financial holding company, predicts a year with many variables. Galligan’s group provides loans greater than $20 million for stabilized, value-add and construction properties in the core commercial real estate sectors, including industrial.

  1. We will see a proliferation of fulfillment centers to meet the growing needs of e-commerce.
  2. There may be a steady buildup of traditional industrial space to meet the needs of the economy growing in the 3 percent-plus range.
  3. There could be a slowdown in the Houston market and attendant sub-markets caused by a decrease in oil prices.
  4. There could be decreased investment in New York State caused by the fracking ban. However, we may see more investment in the U.S. in places where goods and services are produced, especially in gateway markets, due to the strengthening dollar and relatively weaker foreign markets.
  5. We will witness an increase in banks willing to finance speculative construction lending on fulfillment and traditional warehouse and storage facilities.
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