Post-Pandemic Takeaways in Industrial Real Estate

Written by Saunders Seismic on 9th July 2020

It is safe to say the entire commercial real estate industry decelerated as the COVID-19 pandemic set in. However, it was brief for industrial real estate. According to several panelists from premier real estate companies at the NAIOP 2020 I.CON Virtual Conference, industrial real estate is expected to accelerate Q-3/4 and on through 2021.

COVID-19’s Initial Impact on Commercial Real Estate

Widespread Business Closures

At the beginning of the pandemic, stringent shelter-in-place government-mandated restrictions caused many businesses to shutter indefinitely, including:

Dine-in restaurants
Gyms
Nightclubs
Convention centers
Entertainment venues

As a result, commercial real estate professionals faced new challenges, such as rent collections and deferral agreements, which replaced pre-pandemic concerns like labor shortages.

Varied Market Impacts

The impact of COVID-19 varied across markets. Despite initial concerns, rent collection challenges were not as prevalent as many had feared, providing some relief for property owners and investors.

The Accelerated Adoption of E-Commerce

E-Commerce Growth During the Pandemic

One of the major takeaways for industrial real estate post-pandemic is the accelerated adoption of e-commerce. Demand for online orders skyrocketed, with consumers relying heavily on online platforms for:

Groceries
Pharmacy supplies
Home improvement goods

Increased Demand for Industrial Space

With rising e-commerce demand, businesses sought to keep inventory levels high and close to consumers. This created an additional demand for industrial space.

Will We Run Out of Industrial Space?

According to panelists from the I.CON Virtual Conference, while demand for industrial space will significantly increase, it is unlikely we will run out of space. This positive outlook underscores the industrial sector’s strength and adaptability in meeting market demands.

A Bright Future for Industrial Real Estate

The industrial sector of commercial real estate maintains a positive growth outlook with no signs of slowing down. The pandemic only reinforced this trajectory, solidifying the importance of e-commerce and the accompanying demand for industrial spaces.

Position Your Portfolio for Growth

The industrial sector has proven its resilience and potential for growth, especially in a post-pandemic world driven by e-commerce. Ensure your commercial real estate assets are ready to meet evolving demands. Saunders Seismic specializes in seismic retrofits and structural repairs, safeguarding your properties against risks while maximizing their value.