After the rollercoaster ride of much of 2020, two recent developments are prompting a more positive outlook for the coming year: the increasing availability of effective vaccines and the new $1.9 trillion stimulus in the United States. As more of the population is inoculated and the stimulus works its way into the economy, confidence is expected to spur a surge in spending as consumers resume pre-pandemic activities such as dining, entertainment and travel. This economic recovery – combined with progress in global trade – should reinforce demand for industrial space. For the eighth consecutive year, net absorption in the U.S. will exceed 200 msf. The high demand is geographically dispersed, especially throughout the United States.
For this report, we interviewed representatives from some of the nation’s most prominent institutional buyers and sellers of industrial assets, including Cushman & Wakefield’s Industrial Capital Markets, Industrial Services and Industrial Research Groups. The process involves a myriad of factors, but primarily includes: analysis of the physical aspects by asset quality (Class A, B or C) and location; assessment of risks associated with current market conditions and tenancies; and a forecast of future trends driven by changing demand indicators.
To learn more about our findings across asset types and geographic markets, and for insights into the risk factors influencing investor decisions, download What's Next for Industrial Investors—Spring 2021.