Industrial CRE has seen high inflation and costs slow demand. And yet, according to CommercialEdge, that has only caused vacancies to normalize.

There has been a push by the federal government for more manufacturing, particularly in semiconductors and clean energy, respectively through the CHIPS and Science Act and the Inflation Reduction Act. In April, annualized manufacturing construction spending was $233 billion, a triple jump over the last three years. CommercialEdge's own data shows that manufacturing accounted for 30% (124.8 million square feet) of all space under construction

"We anticipate that manufacturing will continue to drive a great deal of activity for industrial real estate, but it will be years before the impacts are fully seen, our industrial property outlook indicates," CommercialEdge writes. "The new tariffs will increase the prices of clean energy technology for consumers but will be a positive for the industrial sector. Once projects are delivered, we expect manufacturing employment to rise and supplemental firms to take root as well."