Industrial’s Leasing Rates, Strong Demand Likely to Continue

Spec development “is going to be halted” in the industrial sector, though demand will continue as tenants absorb remaining product, pushing leasing rates to new highs.

That’s according to Ra’eesa Motala, Vice President, Industrial & Corporate Solutions at Rokos Advisors, who will deliver a keynote this week at the GlobeSt Industrial conference focusing on evolving trends in the sector.

Motala says today’s tenants are looking for flexibility, functionality and location, with e-commerce, wholesale and distribution most active within the sector. She believes online shopping trends will continue to push in a positive direction, noting that despite Covid’s threat to supply chains, “once retailers are able to stabilize and catch up with demand, there will always be an online shopper for essentials.”

“Convenience is driving that; however, it is also generational along demographic lines,” Motala says.

Heading into 2023, she’ll be watching inflation, interest rates, and consumer confidence measures, adding that the labor and housing markets, as well as the price of oil will impact how the industry navigates the next few years.

 Critically, “technology is inevitable,” she says. “The longer we fight implementation, the further we fall behind. With an onset of labor challenges, automation is taking lead and reaching new heights to fill that void.”

  Check back soon for more updates from Motala and other panelists at GlobeSt’s Industrial conference in Scottsdale, Ariz.