2018 Industrial Real Estate Trends
Industrial has been the most sought-after property type for the real estate investment community over the past three years and all indications point to that continuing in 2018. Historically, industrial property demand has been a function of economic growth. However, the recent growth of e-commerce, 15% annually, and the need for “one-day delivery” has fueled a secular shift in industrial use and tenants. Forecasters predict for every $1 billion in additional e-commerce sales, another 1.25 million s/f of distribution space is required. This means that at least another 85 million s/f of additional distribution space will be demanded in 2018. Therefore, despite GDP growth hovering around 2% annually for the past seven years, industrial real estate will continue to outperform due to e-commerce driving the market.