Core industrial markets will continue to perform well in 2023 despite a weakening economy, but construction levels in some metros pose a threat of overbuilding in those regions.

Supply at the end of 2022 hit a new record, according to a fourth-quarter analysis from Colliers, rising 25.9% year over year, and the pipeline remains robust despite many developers hitting pause on new starts. A total of 466.9 million square feet was completed at the end of the year, with 647.3 million square feet under construction at the close of the fourth quarter. Colliers also points to evidence of the growing reshoring movement, noting that nearly 100 manufacturing facilities larger than 100,000 square feet were under construction at year-end, for a total of more than 40 million square feet.

"The reshoring of manufacturing continues to be popularized in the US," the report states. "More manufacturing facilities are breaking ground in the U.S after global events revealed more risks on the supply chain. Reshoring is generally costly; however, it may be the best cost option for some to ensure supply chain resiliency."