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Industrial Real Estate Demand Strong Heading Toward Final Months Of Tumultuous Year

The nation’s industrial real estate market is headed toward the closing months of 2022 with strong demand overcoming uncertainty about the course of the global economy.

Leasing of logistics, manufacturing and warehouse properties has been hitting records during the third quarter as businesses and investors also build and buy industrial properties at near-record levels, analysts and brokers told CoStar News. That comes as they describe heading into a fourth quarter beset by uncertainty as the prospect of a recession looms, interest rates are expected to bump up further and the pandemic grinds on.
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The Boom Times in Industrial Real Estate Are Far From Over

industrial warehouse

Industrial real estate has been the standout sector in real estate for close to a decade, and the pandemic only further entrenched its position.

While other sectors of the economy ground to a virtual halt, consumers’ accelerated shift toward e-commerce made industrial one of the few assets to benefit from lockdowns and social distancing.

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Industrial Real Estate’s Positive Prognosis

The COVID-19 pandemic is disrupting the supply chain and forcing many consumers to change the way they shop. But while these disruptions are creating economic strain, they also present huge opportunities for industrial real estate.

It’s easy to see why. Social distancing has changed the nature of how people buy goods because, in the absence of conventional retail, consumers are making the most of their purchases online.

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