Speculative industrial development will moderate next year, while total occupied industrial space will continue to grow. At the same time, onshoring and nearshoring activity is changing the way freight moves into and through the country and which markets function as industrial hubs.

With a 25% increase in domestic freight volume and a 35% expansion of logistics inventory in the past 20 years, the United States requires infrastructure improvements to ensure the supply chain functions optimally, according to Newmark Research's latest industrial report. The firm said there is a strong correlation between investment in transportation infrastructure and expanding industrial occupancy.

However, abnormal economic and market conditions have pushed industrial development to all-time highs during the past 5 years while the high-interest-rate environment has hampered private infrastructure funding. Infrastructure spending is expected to increase as government outlays – primarily the Bipartisan Infrastructure Law (BIL) — are set to accelerate and interest rate relief will help unlock liquidity in private spending, the report said.