The Rising Cost of Supply Chain Disruptors

PARK CITY, UT—Supply chain disruptors can be expensive, especially if you’re looking to build now. That’s according to Geri Borger Urgo, head of production at NewPoint Real Estate Capital.

Borger served as a panelist during a recent mega session, which brought together industry experts to discuss macro and micro trends in different property types, at the Women of Influence national conference here in Park City, UT.

“What’s coming online is going to be expensive and you’re going to have to have a lot of capital because of the disruptors,” Borger explained. “The impact will be on the tenant.”

Panelists then discussed affordability and at what point it is feasible for an average renter to be able to afford a house and a place to live. “The rising cost will put more pressure on that,” Borger said. “The biggest impact you will see is a widened affordability crisis.”

In the industrial space, Amanda Ortiz, national director of industrial research for Colliers, said rents have also increased in many of the port markets. “Year over year, the port of entry container volume has increased and we will see more activity in other markets for port activity. We also have 600 million square feet under construction, which will be online in the next 18 months.”

He added that in the industrial market there have also been new initiatives for sustainability. He is also beginning to see new demands from tenants in the space, such as multi-story industrial buildings.

Moderator Carmen Decker, president of Kimco Realty’s Western Region, said sustainability is really being demanded of investors and analysts. “We have to pay more attention to the impact that our malls are having on the environment.”

According to Decker, Kimco has invested in things like LED lighting, sprinkler systems, and also hired an ESG director who is working to expand not only how Kimco is implementing sustainable practices in their malls, but also how they can better work with tenants. in those centers to implement it as well.

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