“If you are considering the purchase or lease of an existing commercial facility the time to do it is now.” Bryce Custer, SIOR, CCIM with NAI Spring Realty.
CANTON, OH, USA, April 12, 2021 /EINPresswire.com/ — “If you are considering the purchase or lease of an existing commercial facility the time to do it is now.” said Bryce Custer, SIOR, CCIM with NAI Spring Commercial Realty.
Steel and other commodities are experiencing price increases that have never been seen before. “I was speaking with a fabricator who is quoting 24-48 hour pricing due to the meteoric rise of steel.” said Custer. According to steel companies and fabricators there is no end to rising prices in sight.
We will begin to see an immediate ripple effect in prices per square foot of existing sales and leases. Replacement costs for industrial buildings are pushing $100.00/sqft compared to ~$40.00 – $50.00/sqft ten years ago. Steel, lumber and other components associated with construction are also seeing a rise and limited availability further pushing up overall prices.
According to a letter from ARCO/MURRAY “Amazon has communicated to them (Nucor Steel) a need for 400,000 tons of joist and girder in 2021. Keep in mind that the national capacity is 1.2M tons, with Amazon effectively wanting 33% of the entire national capacity (closer to 50% when you adjust for capacity issues currently).”
Now is an excellent time to lock in lease rates or to consider the existing facility that may have lower then desired ceiling height. It appears that pricing will continue to rise for the foreseeable future on all warehouse and distribution space
"We are also seeing increased activity of steel on barge utilizing the cost savings of moving product on the Ohio River from Cincinnati to East Liverpool, OH.." said Custer (Custer is also the Principal at Ohio River Corridor. LLC who focuses on Inland Waterways ports and terminals for sale or lease).
If you are in the market to lease/buy or would like to sell in order to capitalize on high prices and lower CAP rates contact Bryce Custer, SIOR, CCIM or Dan Spring, SIOR at NAI Spring (330) 966-7579. firstname.lastname@example.org www.naispring.com www.ohiorivercorridor.com
Pier 48 Stevedoring Wellsville OH (Ohio River Terminal)
Source: EIN Presswire