The Industrial Sector continues to remain in high demand. Increasing evidence suggests that NOW is the time to find the right space for your business and invest in industrial property, don’t wait!
“Despite the fact that 375 million square feet of distribution space is expected to open up in 2022, booming demand for U.S. industrial warehouse space is expected to eclipse supply, according to logistics real estate investment trust Prologis. If the current rate of demand continues, logistics tenants are set to gobble every last morsel of space 16 months from now. While 16 months may not sound like an alarmingly short period, according to Prologis’ head of U.S. research, the projected timeline for industrial demand outpacing supply had never been shorter than double that amount
From the fourth quarter of 2021 to the first quarter of 2022, industrial rents increased by 8.5 percent, while vacancies fell to 3.2 percent. The record-low inventory is a result of a combination of factors: a dramatic shift of consumer habits induced by the COVID-19 pandemic, supply chain delays, and laggard rates of construction. Prologis also projects a whopping 22 percent rent increase for this year.”
Read full Propmodo article: The U.S. Will Run Out of Industrial Space Soon, Says Prologis
“Last-mile facilities, which were already highly prized in recent years, are emerging as perhaps the most desirable asset class for industrial real estate investors right now.”
Read full Wealth Management article: Investors, End-Users Compete for Last-Mile Warehouses as Rents Skyrocket
“Exclusive research shows high levels of bullishness for industrial real estate, although capital markets have begun to tighten.
Concerns about inflation, rising interest rates and a potential recession are not enough to dissuade optimism for the overall state of the industrial real estate sector, according to the overwhelming majority of respondents in WMRE’s eighth annual industrial market study. Sentiments on many of the report’s metrics reached new record highs.”
Read full Wealth Management article: The Industrial Sector’s Scorching Run Continues
