Hughes Marino says it’s no secret that the COVID-19 pandemic has significantly impacted the sale of, and varying needs for, commercial properties in 2022. Known for its expertise in commercial property offerings, Hughes Marino states that multiple factors contribute to the ever-changing demands of the sector, from robotic automation and the life science explosion to vertical warehousing, smart warehouses, and supply chain issues. As new challenges continue to arise, Hughes Marino is prepared to provide solutions.
Here’s a look at some of the hottest commercial property trends that Hughes Marino is keeping a sharp eye on.
Robotic Automation: The Future Is Now
Autonomous robots are a major trend in the warehousing industry, says scoutsft.com, an inventory management software and cloud-based solution firm. Warehouses are expected to drop $27 billion into robotic automation by 2025. Autonomous mobile robots can work in a warehouse without needing a track or a programmed system in place to hinder its mobile ability.
Life Science Is Booming
Hughes Marino has been a major player in securing lab space for San Diego’s life science sector. The firm has been involved with leasing, renewing, buying, and building life science biotech space for biotechnology, medical devices and diagnostics, and industrial biotech.
From tenant and buyer representation to lease restructuring and commercial property outsourcing, Hughes Marino continues to be dedicated to remaining an industry leader in the San Diego community and throughout the U.S. for biotech firms. The company has won its fair share of awards as an industry leader, topping the lists of the 100 Best Workplaces for Women, the 100 Best Workplaces for Diversity, and the 150 Best Small and Medium Companies to Work For.
Vertical Warehouses Stacking Up
Hughes Marino is keeping vertical warehouses on its radar. It’s becoming a smart solution for clients short on space.
As real estate values have gone up, vertical construction is an obvious solution, according to logistics experts dcvelocity.com. Hughes Marino Senior Vice President Mike Paleo says while the commercial property market has been on a wild ride, clients are seeking out experts such as Hughes Marino to help navigate uncharted waters. “The industrial real estate market has been on a fast-moving roller-coaster ride through the pandemic, and it’s not slowing down just yet,” says Paleo. “While the general public is pausing cautiously for a recessionlike dip, industrial developers are feverishly battling for the front seat of the ride.”
An ever-increasing cost of developable land in addition to a shortage of land are also factors, say the pros at Hughes Marino. Prices for concrete and steel are also rising, presenting even greater hurdles for developers. Paleo says that’s one of several reasons why it’s more crucial than ever to seek the advanced services of a professional firm such as Hughes Marino.
Logistics firm Prologis built America’s first multistory industrial warehouse in Seattle — and the groundbreaking facility surely won’t be the last. Similar structures are planned for San Francisco and Los Angeles, according to freightwaves.com.
Smart Warehouses on the Rise
By 2028, the smart warehouse market is projected to be worth around $29 billion. Robotics and cloud computing are just two of the ways warehouse technology is experiencing a revolution, according to scoutsft.com. Artificial intelligence is also having an impact on logistics and warehouse technologies.
Using AI, scoutsft.com states, machines can be programmed to perform repeated tasks, and thanks to advanced technology, it can increase productivity and continually enhance processes over time.
Data analysis is also playing a role in warehouse functionality. Advances in data collection and tracking provide a better look into businesses and elevate predictive analytics, which can help warehouses boost efficiency in all aspects of the supply chain.
Supply Chain Issues Abound
Supply chain problems since the COVID-19 pandemic started have been nothing short of a nightmare for companies and consumers alike. Everything from juice boxes and toilet paper to cosmetics and even meat have fallen victim to supply and delivery woes. Many companies have been stocking up on extra warehouse space to store additional products and goods. Another year of supply chain problems is already being predicted by a University of Rochester economist.
“This is the worst that it’s been in 50 years — and it’s probably getting worse, considering that China has been shutting down cities and production facilities,” George Alessandria told rochester.edu. “The massive lockdowns in Shanghai and Beijing will eventually ripple through the system again.”
Alessandria, an expert in international trade, says the Russia-Ukraine war isn’t helping things.
“Absent the war, I would have thought everything would go back to normal a year from now,” he says. “But we’re still seeing these closures in China that reduce the supply of goods for production in other parts of the world. But I think we’ll have at least another year of low growth, high prices, and bare shelves.”
Media site Quartz reports supply chain inefficiencies are also badly affecting food retailers. A recent survey from the Food Industry Association found that 70% of retailers said supply chain disruptions are negatively impacting their business.
“Supply chain disruptions have caused manufacturers to rethink their production strategy,” Paleo says. “Hughes Marino is thinking outside of the box to help our clients meet their current needs.”