The global forces affecting logistics real estate include less volatility, consumer service levels fueling demand and contracting new building deliveries.
A new method developed by NAIOP of ranking industrial markets in both sales volume and volatility claims to offer new insight into risks that may help investors and developers create better strategies around market entry and exit.
Despite headwinds, this soaring niche continues to attract an increasing number of investors. Industry experts expect substantial growth to continue, driven by increasing demand and need for temperature-controlled storage and transportation of food, pharmaceuticals and chemicals.
According to Green Street’s latest industrial sector update, the eport authors point to cold storage demand, rising NOI forecasts and cash-releasing spreads — especially at Prologis — and Houston and East Coast port activity.
The electric vehicle industry is set to fuel demand for industrial real estate for years to come, predicts CRE research firm YardiMatrix. And major automakers have announced plans to produce EVs or batteries since the US Inflation Reduction Act brought in the subsidies, which require that the vehicles be made mostly in the US.