Tenants Covet Space at Each Stage of Supply Chain; Investor Fervor Signals Long-Term Confidence
- Comprehensive demand drivers strengthen outlook. The industrial sector is emerging from the health crisis well positioned to continue its upward growth trajectory even as the advancement of e-commerce returns to a more sustainable level of expansion.
- Freight handling trends impact port cities. Consumers’ return to in-store shopping is extending a stretch of record import activity that began last summer.
- Tech-centric industrial key to dual-channel alignment. Widespread vaccination and the reopening of economies has supported a significant return to in-store shopping across the nation; however, consumers’ reliance on e-commerce is not anticipated to fade.
- A focus on emerging markets. Industrial users are upgrading distribution networks in secondary and tertiary cities, confident that the movement of families and individuals to areas of lower housing costs and reduced density is a long-term trend.
*Forecast | Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics, Capital Economics; Freddie Mac; Moody’s Analytics;
Mortgage Bankers Association; National Association of Realtors; National Association of Home Builders; BLS; Federal Reserve; RealPage, Inc.; U.S. Census Bureau; Wells Fargo
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