Hawkins commented on some of the reasons why DCT’s development program continues to achieve results that are well ahead of initial projections. Hawkins noted that demand for distribution space is broad, both in terms of the size of space and geographic markets. Constrained supply also has contributed to increased rents and faster lease-ups, he added.
DCT’s development program benefits from the local knowledge of its market teams and their ability to “assemble sites in phenomenal infill locations and then execute on the leasing,” according to Hawkins.
Hawkins emphasized that development and creating growth in the existing portfolio are the company’s first two priorities, ahead of acquisitions. He noted that potential acquisitions need to provide the opportunity for near-term or longer-term cash flow growth that is above the average of the current portfolio.
Meanwhile, Hawkins said he expects capital sources for the industrial sector to remain “fairly broad and deep."