Industrial Real Estate Remains the Little Engine that Could
Colliers International continues to believe that modern industrial property is an attractive asset class.
U.S. Industrial Trends
- A U.S. manufacturing renaissance combined with growing agriculture and energy exports fuels demand for industrial real estate.
- Proximity to intermodal infrastructure, ports and resources influence investor demand for industrial space.
- High vacancy rates in some markets are propped up by functionally obsolete warehouses with low clear heights or lack of rail access, which mask the need for new bulk warehouse construction.
- East Coast industrial is poised for demand growth, with port traffic growing faster than the Gulf or West Coast, and a Panama Canal expansion just around the corner.
- Investor demand in non-core industrial is growing, as demonstrated by the recent $770 million DEXUS Property Group portfolio sale.