Analysts point to new tariffs imposed by the Trump administration as a key factor weighing on industrial development. This slowdown could undermine earlier expectations of a strong rebound in 2026.
Trade tariffs may lead to inflation and recession, as seen in the past, with profound effects on the construction sector, impacting both costs and demand. And immigration policies that induce fear among workers could worsen the ongoing labor shortages in construction, making it harder to recruit and retain skilled labor.
The amount of industrial properties 100,000 square feet or more in size within 30 minutes of ports is at record levels. The reason is economic. Developers wanted to appeal to large companies with strong credit and such companies typically are looking for bigger facilities.
The global forces affecting logistics real estate include less volatility, consumer service levels fueling demand and contracting new building deliveries.