The industrial real estate sector is likely heading for slower growth, according to a forecast published by the Deloitte Center for Financial Services.
The sector, composed of warehouses, distribution centers, flex spaces, and other industrial buildings with storage facilities, has seen sustained demand over the past five years. But potential marketplace shifts including growing e-commerce demand, market oversupply, rising interest rates, and a higher cost of capital will likely mean slower growth, the report says.
While warehousing continues to be robust, the looming deceleration in demand growth is going to put pressure on owners to become more creative in how they use and buy industrial real estate, Deloitte says. More than 30% of U.S. warehouse buildings are more than 50 years old, and the average age of all warehouse properties is 34.
With the cost of capital rising and supply ballooning, retrofitting spaces, identifying new warehousing models, and developing smarter facilities will become necessary.
Related Stories
Codes and Standards | Nov 30, 2018
Best solution to prevent California wildfire disasters: Stop building in places likely to burn
Approach would be unpopular as people attracted to stunning wooded landscapes.
Codes and Standards | Nov 29, 2018
USGBC and BRE form partnership
Two green standards groups will collaborate on standards, platforms, and research.
Codes and Standards | Nov 29, 2018
Parking garages in N.Y. State will have to be inspected every three years
Professional engineer must assess conditions.
Codes and Standards | Nov 28, 2018
To build water-efficient cities, water managers and urban planners must coordinate better
Lack of time and resources, and practitioners not in habit of working together hamper efforts.
Codes and Standards | Nov 27, 2018
AAMA updates specification for roller assemblies in sliding doors, and lift and slide doors
Last update was in 2015.
Codes and Standards | Nov 26, 2018
All LEED-certified buildings eligible for LEED recertification
Projects must submit 12 months of data demonstrating continued or improved performance.
Codes and Standards | Nov 20, 2018
OSHA publishes updates to crane operator certification requirements
Long-delayed rules accept certifications by type or type and capacity.
Codes and Standards | Nov 19, 2018
Guide offers understanding of elements that create successful multi-floor communal spaces
CTBUH technical document analyzes how to approach tall urban habitat.
Codes and Standards | Nov 16, 2018
2018 International Green Construction Code released
Updated version helps governments streamline code development and adoption.
Codes and Standards | Nov 15, 2018
New versions of DOE’s EnergyPlus engine and the OpenStudio software development kit released
New offerings resolve over 70 bugs and offer new features.
