The Crazy Demand Driving Industrial Real Estate Expected To Slow

Jurate Gulbinas   |   16 Jan 2017   |   2 min read

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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Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

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