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 | Aug 30, 2021
Facebook’s new $800 million Arizona data center to save big on water
Will restore more than 200 million gallons of water per year to river basins.
Codes and Standards | Aug 26, 2021
California may require solar on new high-rise residential and commercial buildings
State energy commission approves proposal; Could become law in 2023.
Codes and Standards | Aug 25, 2021
Study finds racism, discrimination common in construction industry
NIBS to share best practices with industry leaders to improve worker treatment.
Codes and Standards | Aug 24, 2021
White paper addresses insulated metal panel specifications for roofs and walls
Pertains to provisions of the National Building Code of Canada.
Codes and Standards | Aug 24, 2021
KTGY releases free resource to reduce carbon footprint in multifamily developments
Helps navigate Denver Green Code measures—a series of voluntary codes.
Codes and Standards | Aug 19, 2021
Massive infrastructure bill includes hundreds of millions for building energy efficiency
Funds allotted for updated code implementation, construction technology, K-12 efficiency programs.
Codes and Standards | Aug 18, 2021
Fannie Mae green bonds program could be greenwashing
Analysis shows significant number of green bond properties become less efficient.
Codes and Standards | Aug 17, 2021
Three Texas cities head list of most environmentally vulnerable
Hazard analysis includes natural disasters and government response categories.
Codes and Standards | Aug 16, 2021
Bill would reform New York’s public contracting process
Council on Public Contracting Reform to have contractor representation.
Codes and Standards | Aug 12, 2021
AGC pushes for more environmentally friendly construction
Contractor trade group supports government investment, tax incentives to reduce carbon footprints.
