Much like last week, we continue to operate both of our construction businesses and our development business in a more stable environment. While we proceed to put current work in place, we are also focused on signing new work and maintaining a healthy backlog of business. Because of the long lead times necessary to build most buildings, the construction industry typically lags behind the rest of the economy. As a result, 2021’s numbers may show the adverse effects of Coronavirus more so than 2020. Our business was challenged this past week as some states, in our view, are prematurely opening up and putting our employees at a higher risk than we are comfortable with. We continue to respect CDC guidelines and are operating all of our job sites and offices nationwide within those recommendations. As I said last week, detailed planning is underway for how to open up safely when the right time comes.

Industrial development continues to be in a moment of pause. Although there have been some notable new e-commerce leases signed recently, non-e-commerce leasing is slow. Most sales of both land parcels and cash-flowing assets are on hold, as substantial discounts have not yet been presented, but more nuanced pricing in this new environment has not yet been triangulated. Underwritten lease-up time frames and rent growth are both becoming more conservative. Non-recourse lending seems to be less widely available in the short term. That said, industrial real estate is widely expected to be an eventual beneficiary of increased long-term demand. Those who time it well will come out of this successfully.

Written by Molly McShane, Chief Operating Officer of The McShane Companies
Published by ULI Chicago

Latest News

Sven Tustin Promoted to Chief Growth Officer

Sven Tustin Promoted to Chief Growth Officer

Conor Commercial Real Estate is pleased to announce the promotion of Sven Tustin to Chief Growth Officer. In this role, he will focus on Conor’s growth and innovation. “Sven is a very talented and dedicated individual who holds high standards for himself and those...

How Industrial Can Be a Good Neighbor

How Industrial Can Be a Good Neighbor

Written by Brian Quigley, Executive Vice President Bringing industrial properties to residential communities can be a controversial topic. People hear “industrial” and instantly think of smokestacks blocking the sky and semi-trucks rumbling through their...

Common Ground – Spring 2023

Common Ground – Spring 2023

Common Ground - Spring 2023 The latest commercial real estate news is here. Find updates on commercial real estate trends, Conor's projects, and employees. View Interactive Version Download PDF

Southeast Gateway Fully Leased in Savannah

Southeast Gateway Fully Leased in Savannah

Conor Commercial Real Estate executed two full-building leases at Southeast Gateway in Savannah, Georgia. The two-building, 1.2 million-square-foot development is now fully leased. Swiss Madison, a manufacturer of bath products, leased the 184,080-square-foot Building...