How Strong Is Industrial Real Estate?
Wondering just how strong industrial real estate is nationally? Take a look at this article from Commercial Property Executive Excellent overview by CP Executive and JLL’s Trent Agnew. Quick takeaways:
- Due to capital market sales, $20B less traded in 2020 than 2019.
- 524M square feet leased in Q4 20 alone!
- 5.4% national vacancy rate.
- 327M SF of new construction in 2020.
- Cap rates on investment sales continue to decrease.
- More of the same expected in 2021.
- Class B market continues to be highly sought (in attractive markets).
- More e-commerce expansion.
Additional personal opinion in southern New England for 2021…
- Lack of inventory could squeeze 2021 results.
- e-commerce, while still active, might be less so in 2021 (warehouse slack, alternative solutions).
See full Commercial Property Executive article: Just How Strong Is Industrial Real Estate?