The logistics demand surge is attributed to the “re-industrialization of America,” fueled by data center development, e-commerce growth, and resilient consumer spending.
With shipping and freight insurance costs rising significantly, US manufacturers are pivoting to be more local. This has the potential to profoundly impact all types of CRE in markets all over the country.
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.
Any hope, faint as it might have been, that industrial supply would start to catch up with demand this year should be already dashed by now. The National Association of Realtors reported data through March 4, finding that industrial supply continues to lag demand. Namely, as of the beginning of this month, the vacancy rate