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 | Oct 16, 2015
Appellate court enacts nationwide stay on controversial expansion of Clean Water Act
New EPA rule suspended until court cases settled.
Codes and Standards | Oct 9, 2015
New California law means commercial building benchmarking program will be implemented
Multifamily housing to be included, a first for a U.S. state.
Codes and Standards | Oct 2, 2015
New ASHRAE guideline for commissioning existing systems and assemblies
Focuses on optimum facility and system operation.
Codes and Standards | Sep 18, 2015
New RELi standard addresses disaster resilience
Based on LEED model, may help lower insurance rates
Building Materials | Aug 28, 2015
Structural steel buildings specification available for second public review
Next year's specification open for comments until Sept. 21
Energy Efficiency | Aug 28, 2015
North American Passive House Network e-book explains Passivhaus, net-zero techniques
Free guide includes spotlight on individual projects
Windows and Doors | Aug 28, 2015
Newly formed group challenges Florida building code
Window, door companies oppose provisions that raise costs
Codes and Standards | Aug 28, 2015
New Orleans becoming a model for climate resilience only 10 years after Katrina
The city has moved ahead with resilience strategies that may become a model for other communities
Codes and Standards | Aug 21, 2015
Illinois governor vetoes bill that would restrict condo owners’ rights
Bill would have made it harder to sue for building flaws
Codes and Standards | Aug 21, 2015
Post-Katrina roofing codes creating more resilient buildings on Gulf Coast
Ten years after storm, notable progress on stronger roofs, IBHS says
