Industrial Demand Outpaces Supply

Demand for industrial development has exceeded expectations and industrial leasing activity remains strong. This is based on the 2022 Midwest Industrial Outlook reported by JLL.

Supply chain distribution and increased material costs are two construction challenges slowing industrial development even though there is high demand. Sam Newberg, research director with JLL noted “developers who have ordered their building materials ahead of time are the ones who will be able to get into the ground first. So it's sort of a race.”

According to the report, there is also an increase in the percentage (61%) of spec buildings that are preleased before construction is complete which is up from the past 7 year average (45%).

"The top developers include Scannell Properties, which developed more than 2 million square feet of industrial space — 43% being spec — between 2020 and 2021. Next in line is United Properties with 903,000 square feet, 91% of which was spec. Opus Group, Endeavor and WPT Capital round out the list with entirely speculative properties” reported by J.D. Duggan from Finance & Commerce.

It was also noted that several spec industrial developments are pushing farther out into areas such as the northwest corridor as metro areas are running out of space and vacancies are decreasing.

Read the full article online at Finance & Commerce.

New Development Company – Risky or Not?

It may seem risky to launch a new business as COVID-19 fills the headlines, but according to Josh Budish, “It was time. I was ready. Starting my own business was something I have always wanted to do. I’ve been working now in this industry for nearly 20 years.”

In January, Josh Budish launched Endeavor Development; a company focused solely on industrial real estate development, management and investing. He is taking his extensive experience in the industry and entrepreneurial spirit to build his business with a strong foundation. Josh is excited to offer his partners flexible and creative solutions, “flexibility is critical for today’s world and where it is headed.”

According to Josh, “the market is very strong.” Endeavor Development is off to a great start with current projects totaling over 265,000-square-feet and more in the works. Current developments include Pilot Knob Business Center in Mendota Heights, Highview 610 Business Center in Brooklyn Park and Yankee Doodle Business Center in Eagan.

Midwest Real Estate News interviewed Josh about his career, reasons for his success and all about starting a business in 2021.

Read the full article online at RE Journals.

Launching in a Hot Industrial Market

Twin Cities sees a new player entering the industrial real estate market, Endeavor Development launched by Josh Budish. He was the former market leader for Duke Realty Corp where he was responsible for a 5.1 million-square-foot portfolio. With nearly 20 years of industry experience Josh said he is ready for this entrepreneurial opportunity to create a “clearly focused, strategic and nimble company.”

“The industrial market, and the demand for industrial space nationally, has blown up,” said David Berglund, senior managing director for the Minneapolis office of real estate consultancy Jones Lang LaSalle. Endeavor Development arrives at an opportune time when there is a huge shift in needs in the market from supply chain interruptions to e-commerce growth, Budish is confident he can “address those needs in a creative and focused way.”

Endeavor Development’s first three spec projects include 112,500-square-foot Yankee Doodle Business Center in Eagan, 75,000-square-foot Pilot Knob Business Center in Mendota Heights and 75,000-square-foot Highway 610 Business Center in Brooklyn Park, are all scheduled for fall 2021 occupancy.

Read the full article online at Minneapolis/St. Paul Business Journal.