What’s Driving Record Industrial Real Estate Demand

The global pandemic accelerated the growth of e-commerce as lockdowns and safety concerns prompted an increasing number of consumers worldwide to shop online.

As a result, several years of online sales growth were condensed into 2020 alone, causing industrial leasing to surge globally as logistics became essential for retailers. Changes in population densities, shifting consumer expectations, and increasing transportation costs all played a role in this rise in industrial property demand. But it’s the need for speed that will shatter industrial CRE pricing.

2020 – A Banner Year for Industrial
Throughout Asia Pacific, strong leasing and tight market conditions translated into double-digit increases in rental rates. Tenant demand was also strong across Europe with impressive year-over-year gains in leasing activity in both Eastern Europe (+28 percent) and Western Europe (+10 percent). Meanwhile, activity in the Americas reached a new all-time high with more than 680 million square feet (msf) of new leasing.

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