QUARTER IN REVIEW
As we turn the page on Q2 of 2024, BLP is excited to share some significant developments. We’ve successfully added two new acquisitions to our portfolio, finalized two lease agreements, and have officially broken ground on our newest development located at 1101 N. Old Lake Wilson Road, Kissimmee, Florida. These milestones reflect our unwavering commitment to growth and adaptability in the industrial real estate sector. Discover more about our recent achievements, market insights, and what’s ahead by reading below...
Manufacturing Investment and Global Shifts Drive Industrial Growth
Despite a general slowdown in industrial construction starts, spending on manufacturing facilities continues to climb. This trend is fueled by favorable manufacturing regulations and are alignment of global trade away from China, which is creating new opportunities for domestic production. Additionally, the rapid growth in demand for AI and semiconductor production has bolstered the industrial sector, as companies look to capitalize on re-, near-, and on-shoring strategies. These factors are expected to provide sustained momentum for industrial development, particularly in regions with strong manufacturing hubs.
Construction Pipeline Shrinks as Build-to-Suit Projects Rise
The under-construction pipeline has decreased to 343.4 million square feet (MSF), a 14.4% drop since Q1 and a significant 46% decline from the previous year, with the South and Midwest experiencing the most notable decreases. Speculative construction has dropped to 67.7% of the total pipeline, down from 71.4% in the first quarter, and this share is expected to fall further as speculative warehouse projects are completed. Meanwhile, build-to-suit manufacturing facilities, which have longer construction timelines, remain in high demand. This shift away from speculative builds is likely to place downward pressure on vacancy rates, as fewer new speculative spaces come online while demand for customized industrial spaces continues to grow.
Leasing Activity and Absorption Reflect Strong Market Fundamentals
Leasing activity has shown significant strength throughout 2024, with new lease transactions increasing by 3.6% year-over-year(Y-O-Y) and renewal leases climbing by 9.3% Y-O-Y. This growth highlights the continued demand for industrial space across various property sizes and indicates that the sector remains a cornerstone of economic activity. E-commerce, a key driver of industrial demand since 2020, continues to fuel the need for warehouse and fulfillment centers, as companies seek to streamline logistics and meet consumer expectations for faster deliveries. As a result, industrial absorption is expected to reach 114 million square feet in the second half of 2024, with projections for 2025 hitting 249 million square feet, driven by a favorable outlook on interest rates and ongoing demand.
ACQUISITIONS
7400 Jack Newell Boulevard, Fort Worth, Texas
 | BLP closed on 7400 Jack Newell Blvd, a 79,800 SF rear load warehouse just northeast of the Ft. Worth CBD. This low-coverage, Class A facility features a 28' clear height, tilt-wall construction, and 1.3-acres of fully paved, lighted, and secured excess yard. Jack Newell is fully leased to a national construction material supplier and builds on our strategy of acquiring highly functional, infill buildings in core and high growth US markets. |
3945 Gilbert Road, Atlanta, Georgia
 | BLP acquired the land located at 3945 Gilbert Road located in Atlanta, Georgia. The 20.3-acre site is fully entitled to deliver a 229,776 SF Class A warehouse featuring 36’ clear height and a 185’ truck court, with the flexibility to demise spaces as small as 76k SF. The site is situated in the highly desired Airport Submarket, just inside the I-285 perimeter and provides unparalleled access to Atlanta’s busy air cargo facilities less than 2.5 miles away, in addition to excellent proximity to I-285, I-75, I-85, I-675 and I-20. |
LEASES
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1471 W. Hillsboro Blvd., Deerfield Beach, FL
| 5 Plant Road, Teteboro, NJ
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CONSTRUCTION UPDATES
Park South | GSW - Construction Update
BLP broke ground on Park South | GSW in October and the project is moving fast! Tilt walls are up, structural steel is nearing completion, and roof installation has begun. We are on track for project completion by December 2024. The project features two Class A rear load warehouses totaling 284,865 SF. Each building includes 43 dock-high doors, two grade-level doors, 24' - 32’ clear height, ample car parking including EV charging, and will be delivered with spec office. Park South | GSW is available for pre-lease, and can demised to suites ranging from 20k to 285k SF.
Gateway @429: Construction Update
BLP broke ground on Gateway @ 429 in August with strong momentum. The majority of the 130ac, phased development is already cleared with earthmoving and surcharge operations ongoing. Phase I of the project is on track to deliver a single Class A rear load, front office warehouse totaling 220,329 SF (Building 400) in September 2025. Building 400 will include 62 dock-high doors, 2 grade-level doors, 32’ clear height, ample car parking w/ a delivered 3,100 SF spec office. Building 400 is available for pre-lease, and can demised to suites ranging from 50k to 220k SF. The remaining phases of this project will total 1.175MM SF of development.
FEATURED AVAILABILITIES
ABOUT BLP
BLP is a vertically integrated logistics real estate company and investment manager led by tenured, multi-disciplinary real estate veterans with experience navigating several economic environments over the past three decades. Its founding partners have closed over $20 billion of transaction volume and employ a disciplined investment strategy that is both cycle tested and innovative.
Contact us today for more information about BLP.
Bridge Investment Group Holdings LLC (together with its affiliates, “Bridge”) is providing these materials (the “Materials”) regarding Bridge’s Logistics Properties strategy and the type of transactions targeted on a confidential limited basis, to you (“Recipient”). The distribution to you of the Materials is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any vehicle managed by Bridge (“Fund”), including those managed by Bridge’s Logistics Properties strategy. Any such offer or solicitation of an offer will only be made pursuant to a Fund’s PPM. Statements contained herein are made as of Q2 2024 unless stated otherwise herein. The Materials are intended for authorized recipients only and must be held strictly confidential. No portion of the Materials may be forwarded, shared, reproduced, or distributed in any format without the express written approval of Bridge. This overview should not be regarded by the Recipient as a substitute for the exercise of their own judgment and the Recipient is expected to rely on their own due diligence if they wish to proceed further in investigating a potential investment in a Fund. This overview may contain forward-looking statements, including but not limited to targets, forecasts, estimates, opinions, and projections that involve elements of subjective judgment and analysis. These forward-looking statements are subject to various risks, and Bridge undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates or to update or keep current any of the information contained herein. The Recipient should not construe the contents of this investment overview as legal, tax, accounting or investment advice or a recommendation. Bridge Logistics Properties Fund Manager LLC and Bridge Investment Group are trademarks of Bridge.
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