Accelerated e-commerce adaptation along with the need for supply chain resiliency and diversification have been primary demand drivers for industrial assets in the COVID era. As retailers and manufacturers increase safety inventories and diversify supply chains, strategically located distribution centers will continue to be vital.
This utilization of warehouse space is hovering around 85%, which is near capacity. In fact, rebounding activity and a decreasing supply pipeline could lead to a critical shortage of space in early 2021, according to a report by Prologis.
Two recent portfolio transactions encompassing four properties in each acquisition are prime examples of this demand.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
