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 | Apr 23, 2020
COVID-19 epidemic demonstrates value of flexible hospital space
Some rooms being repurposed for ICU care.
Codes and Standards | Apr 15, 2020
Embodied carbon footprint can be reduced by using conventional materials
High-SCM concrete, and cellulose and wood fiber insulation among the greener alternatives.
Coronavirus | Apr 13, 2020
COVID-19 alert: City conducts a 'virtual building inspection' to allow Starbucks and bank to open
Bothell, Wash., issues a certificate of occupancy to developer after inspecting the property online.
Codes and Standards | Apr 13, 2020
Design competition focuses on reducing urban heat island effect
Cool Abu Dhabi aims to transform urban life in the Middle East.
Codes and Standards | Apr 13, 2020
What building science says about reducing COVID-19 transmission
Impact of temperature and relative humidity is unclear.
Codes and Standards | Apr 9, 2020
Owners retrofitting properties, monitoring performance during epidemic
Covid-19 outbreak may lead employers to reevaluate office commitments.
Codes and Standards | Apr 7, 2020
Dept. of Labor publishes guidance on paid sick leave, expanded family and medical leave
Includes fact sheets for employees, employers, and a questions and answers document.
Codes and Standards | Apr 1, 2020
Standards and codes meetings halted, postponed
ASTM International cancels in-person standards meetings; DOE’s National Energy Codes Conference postponed.
Codes and Standards | Mar 26, 2020
Ransomware attack on Canadian contractor underscores need for cybersecurity
Victimized company Bird Construction has defense, law enforcement contracts.
Codes and Standards | Mar 23, 2020
Contractors should scrutinize contracts carefully amid Covid-19 crisis
Compliance with time-sensitive notice requirements and careful documentation required.