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How Transport’s ‘Rule of 1.5’ Is Driving Soaring Demand for Warehouse Space

The US industrial market is on pace for a record leasing volume with activity through July reaching 587 million square feet – 52 percent more than the year-earlier period, according to a new report from CBRE.

Sharply higher transportation costs – which are rising faster than rental rates – is helping to fuel this robust leasing activity.

The spike in transportation costs – across sea, land and air – is the result of backlogs at ports, rising fuel prices and increased strong consumer demand driven by e-commerce growth and the pandemic’s continued effects.

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Foreign Investors Continue to Prefer Industrial Assets, Latest AFIRE Survey Reveals

Once again in 2019, foreign investors in U.S. commercial real estate indicated they would most like to increase their allocations to industrial properties, according to this year’s survey by the Association of Foreign Real Estate Professionals (AFIRE), an organization promoting cross-border real estate investment.

Seventy-nine percent of 2019 survey participants said they would like to increase their exposure to U.S. industrial real estate, with multifamily investment coming in second, with 71 percent of respondents saying they would like to increase their exposure to the property type.

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