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 | Mar 5, 2020
France to mandate all new public buildings be 50% timber or other natural materials
Measure would go into effect by 2022.
Codes and Standards | Mar 4, 2020
American Concrete Institute and Precast/Prestressed Concrete Institute expand partnership
Will collaborate on new code requirements.
Codes and Standards | Mar 3, 2020
Wallcoverings industry releases product scorecards concerning sustainability
Tool adds more transparency to certification.
Codes and Standards | Feb 28, 2020
Bay Area communities struggle with what to do about rising sea level
Policies include sea walls, levies, and relocation.
Codes and Standards | Feb 27, 2020
Cell phones present a safety hazard at job sites
Use of ear buds, headphones banned by some contractors.
Codes and Standards | Feb 26, 2020
American Concrete Institute releases 2020 codes, specifications, and practices
ACI Collection features guidance on structural concrete construction and rehabilitation.
Codes and Standards | Feb 25, 2020
New ISO standard for optimizing building use and reusing and recycling components released
Aim is to realize full potential value of a building throughout its life cycle.
Codes and Standards | Feb 21, 2020
Architects push back on proposed uniform design mandate for federal architecture
AIA speaks out against measure.
Codes and Standards | Feb 20, 2020
City-owned buildings to go carbon-free in Los Angeles
Mayor commits to goal for new and extensively renovated structures.
Codes and Standards | Feb 19, 2020
Public is willing to volunteer to maintain green infrastructure
Perceived benefits make residents willing to help public works departments.