May 26, 2020
It’s no secret that industrial owners are more insulated from the current crisis than their peers in office, retail or hospitality. But projections from the world’s largest real estate services firm suggest that industrial real estate isn’t just going to survive the next six months, it will also thrive in the following year.
According to the Americas research team at CBRE, industrial vacancies will rise over the next two quarters, but drop below pre-coronavirus levels within the next year.
Long-term trends like automation, reshoring of manufacturing and a push to make the national economy more resilient to future crises should help foster a bright future for industrial players when the economy settles down.
“Even if we see some slowdown in the short term, we expect demand to pick up very quickly thereafter,” said Spencer Levy, chairman of Americas research and senior economic advisor at CBRE. “We’re going to see incremental demand for hundreds of millions of square feet of additional industrial space, which will drive development of new, more modern facilities.”
Read the full article on Bisnow.
Levy will deliver the keynote remarks at I.CON Virtual, an online industrial conference taking place from June 23-25.