Top 10 US Regions For Industrial Investors In 2019

Thanks to the U.S. trade war with China, emerging market investors haven’t fared well over the past year. Fortunately, Colliers International recently compiled a list of 10 local emerging industrial markets within the U.S.

The 10 metro markets on the Colliers list will provide the most economic opportunity for both residents and investors in 2019, according to James Breeze, the firm's national director of industrial research.

“There remain emerging industrial markets across the country that both provide yield opportunities for investors and the expansion opportunity for occupiers."

The following are Colliers’ top 10 U.S. industrial markets in 2019:

1. Greenville/Spartanburg/Anderson, South Carolina

The greater Greenville market benefits from its close proximity to the South Carolina Inland Port, and it sports booming automotive (BMW and Michelin), materials manufacturing (textiles) and logistics and distribution businesses.

2. Florida's I-4 Corridor

The I-4 Corridor runs from Daytona Beach through Orlando to Tampa. The region has a rapidly growing population of millennials, and its central location in Florida makes it a key transportation and distribution hub for retailers such as Amazon.com, Inc. AMZN and Walmart, Inc. WMT.

3. Las Vegas, Nevada

The recent expansion in the area is roughly at the same pace as the boom from 2005 to 2007, but this time it is being driven by more sustainable demand from national companies, such as e-commerce retailers.

4. Lehigh Valley, Pennsylvania

FexEx Corporation FDX opened up a new $335-million distribution hub near Lehigh Valley International Airport, and Colliers anticipates infill development in the region as older office and industrial facilities are cleared to make room for new industrial construction.

5. Twin Cities, Minnesota

Colliers said Minneapolis and St. Paul have one of the largest concentrations of young millennial professionals in the country, with 21 percent of the 3.7 million people located within 50 miles falling between the ages of 18 and 34.

6. Sacramento, California

Sacramento is located within 90 miles of technology hub San Francisco, but has a much lower cost of living, a much larger supply of labor and plenty of opportunity for industrial expansion.

7. Savannah, Georgia 

Savannah is the fastest-growing industrial market in the U.S. thanks to its logistics and the fact that it is one of the few remaining sea ports with land available for development.

8. Seattle/Puget Sound, Washington

Seattle had 5 million square feet of new construction in 2018, the most in 10 years. Colliers notes strong tenant demand and said the regions will be a hub for multistory warehouse construction in coming years.

9. Shenandoah Valley/I-85 Corridor, Virginia

This region has close proximity to both Washington, D.C. and Baltimore, as well as the Virginia Inland Port. Colliers said the region will likely transition from a secondary to primary industrial market in the years ahead.

10. St Louis, Missouri 

St. Louis has a record 5.1 million square feet under construction, and Colliers said a significant amount of that space is devoted to e-commerce and third-party logistics.

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