Why Industrial Real Estate Demand Is Booming
One of the most resilient sectors during the COVID-19 crisis has been industrial, as more people turned to online shopping. According to CBRE, demand for industrial space has exceeded supply for 42 consecutive months, with net positive absorption of nearly 57 million sq. ft. in the third quarter, bringing total space absorbed year-to-date to about 120 million sq. ft.
What’s Driving the Industrial Real Estate Surge?
The demand directly results from the accelerated growth rate at which customers utilize online shopping resources for goods and necessities. This has dramatically affected the supply chain and, as a result, driven asset values to record highs, particularly last-mile properties in core urban markets.
One of the most coveted assets for nearly all investor types is last-mile industrial buildings and logistic facilities in urban markets close to dense populations. According to CBRE’s Q3 Capital Market report, single-tenant industrial assets are the most popular, representing $11.3 billion in transactions out of total industrial investment volume during the quarter.
Various investors are now exploring the industrial market due to this growing trend that experts predict long-term ROI, rent growth opportunities, and market stability. For example, Investcorp, a global investment manager specializing in alternative investments, New York-based Lightstone, a private real estate developer/owner, and PGIM Real Estate, a New Jersey-based real estate investment manager, all recently acquired industrial assets.
Build Stronger Industrial Spaces with Saunders Seismic
The industrial real estate sector is booming, but ensuring your properties are structurally sound is more important than ever. Saunders Seismic specializes in industrial seismic retrofits and structural strengthening, helping industrial buildings meet modern demands and safety standards.
Contact us today to discuss how we can support your industrial real estate projects and protect your future investments.