Industrial National Report
July 14, 2022 | Marcus & Millichap
International Forces Position U.S. Industrial Properties Favorably; Nearshoring and Reshoring Potential Raises New Prospects
Global trends place industrial sector in favorable position. Multiple factors are driving record demand for industrial space. Retail spending is elevated both at store and online, fueling the need for more distribution and logistics resources. The inability to source both raw materials and finished goods from overseas on time has also pushed companies to expand their domestic storage capacities to set aside additional inventory when it does arrive. Meanwhile, the quest for treatments and other medical aides amid an aging population and the ongoing threat of COVID-19 has underscored the need for life science research and development space. Combined, all of these factors have propelled the national vacancy rate down 120 basis points from the pre-pandemic mark to 3.8 percent in March, despite substantial new supply. The average asking rent has climbed almost 20 percent as a result, with ample positive momentum to overcome any hurdles moving forward.
