The Crazy Demand Driving Industrial Real Estate Expected To Slow

Though e-commerce continues to power industrial real estate to record levels of occupancy and peaking rents, the general consensus among industry experts is that the sector may slow down this year. One of the greatest factors likely to positively impact the sector is projected growth in GDP. CBRE has raised its economic forecast to 3.5% from its pre-election forecast of 2% to 2.5% economic growth. As for e-commerce being the driving factor behind industrial real estate?

Key Takeaways:

  • The anticipated growth deceleration will have little to do with economic factors. Demand continues to outpace supply, and major retailers and users persist in their scramble for warehouse and distribution space nearer to customers.
  • This is not because the market is bad; users will simply be satisfied with the supply chain and real estate decisions they’ve made, and will wait and see what happens.
  • Economists and Americans in general are expecting President-elect Donald Trump’s plans for fiscal stimulus and business-friendly policies to boost the economy.

“Though e-commerce continues to power industrial real estate to record levels of occupancy and peaking rents, the general consensus among industry experts is that the sector may slow down this year.”

http://www.forbes.com/sites/bisnow/2017/01/10/the-crazy-demand-driving-industrial-real-estate-expected-to-slow/

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