A concept called the Rule of 1.5 finds that transportation issues impact real estate 1.5 years later. In other words, the concerns specific to the supply chain sector today, will be addressed by industrial real estate over the next 18 months with every year having a new wrinkle.
The temporary downturn will slow the rise in warehouse rates, but won’t send them into decline, as has happened in transport modes, according to analysts. They project the vacancy rate to creep up to 6% by the end of 2024, still tight by historical standards, and it should keep pushing pricing higher. CLICK ON THE HEADLINE FOR MORE
It might not seem like a very attractive time to own real estate in the warehousing, distribution or manufacturing business. Not only have the last two years turned real estate, across the board, into an incredibly uncertain investment, but the Federal Reserve is also in the middle of a series of interest rate hikes that
Over the last few years, bolstered by an unprecedented boom in e-commerce and retail sales, the industrial sector has posted historically high demand and supply growth. And that’s led some analysts to question how long the ride can last for the sector that’s relatively unaccustomed to such a meteoric rise. In short, some are wondering
The industrial sector is expected to weather the economic ramifications of the COVID-19 pandemic better than other areas of the economy, according to an Industrial Sector Outlook report by Colliers.