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 | Jan 14, 2020
L.A.’s expedited permitting process credited with faster approvals on $1 billion project
Parallel Design-Permitting Process includes flagging elements for correction during conceptual design.
Codes and Standards | Jan 13, 2020
Kansas City is first in nation to offer free public transportation
Aim is to increase mobility to spur more economic activity.
Codes and Standards | Jan 9, 2020
Dept. of Defense will require beefed up cybersecurity standards in January
All contractors will have to demonstrate secure practices.
Codes and Standards | Jan 8, 2020
2019 Oregon Zero Energy Ready commercial code will boost efficiency by 14%
ASHRAE 90.1 is the basis for new code that went into effect Oct. 1.
Codes and Standards | Jan 8, 2020
Energy efficiency initiatives have significantly cut energy consumption per square foot
Lighting and space heating fell by more than 600 trillion Btu from 2003 to 2012.
Building Technology | Jan 7, 2020
Tariff whiplash for bifacial solar modules
Bifacial solar systems offer many advantages over traditional systems.
Codes and Standards | Jan 7, 2020
New certification program for rigid core luxury vinyl tile
ASSURE CERTIFIED to establish industry-wide quality standards.
Codes and Standards | Jan 7, 2020
Boston’s beefed up wetlands ordinance will limit development
Conservation commission must consider future climate impacts when assessing new projects.
Codes and Standards | Jan 6, 2020
States pick up the slack in efficiency policy as federal government lags
With climate change deniers setting policy in Trump Administration, progress continues in statehouses.
Codes and Standards | Jan 6, 2020
OSHA plans multiple revisions to rules impacting construction industry in 2020
Cranes and derricks, welding in confined spaces, beryllium exposure, and more on docket.
