Will Industrial Demand Outpace Last Year’s?

Original Post: BisNow.com | Re-post Cawley Chicago 1.17.16

Don’t be surprised when demand slows in industrial real estate this year.

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Though e-commerce continues to power industrial real estate to record levels of occupancy and peaking rents, the general consensus among industry experts is that the sector may slow down this year.

The anticipated growth deceleration will have little to do with economic factors. Demand continues to outpace supply, and major retailers and users persist in their scramble for warehouse and distribution space nearer to customers. Investors have been favoring the sector, so it’s been experiencing record levels of acquisition spending and low cap rates.

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