Industrial real estate has seen strong demand growth over the past five years, while other sectors have faced a more challenging time. Over the last four years (2012 to 2016), growth in year-over-to-year (YOY) rent has been positive, and yet the availability rate has been going down year after year. 1 The industrial real estate market witnessed net absorption of nearly one and a half billion square feet between 2014 and 2018.

There is estimated to be an 850 million-square-square-foot industrial real estate growth to 23 billion-square-foot increase by 2023. According to the history of previous years, the manufacturing and retail sectors have provided the most demand for industrial real estate. At times, Internet retailers have had double-digit year-over-over-year growth and needed additional warehouse space to fulfil online orders. The U.S. Census Bureau claims from 2012 to 2017, that e-commerce increased by 14.4% annually, rising from a figure of 11% in the years prior to 2007. 5 Thus, in the preceding three years, e-commerce saw a tripling, prompting companies to look for denser locations because of shorter delivery times. 6 In the five-year period from 2007 to 2012, industrial space increased at 0.7 percent per year, but then 1.1 percent per year from 2012 to 2017.

If you think that is so, you are well informed. e-commerce companies, of course, typically, require more space for sales. you fill shelves with products as well Online customers are approximately three times as likely to return items they’ve purchased. 7 In addition, e-commerce companies will need approximately 20% more space to manage return-path sales. The growth of e-commerce will result in an increase in product returns, which will necessitate additional industrial space.

Most industrial real estate owners have seen their markets get slower, competition to rise, and financing costs rise. How should they deal with this? If they focused on innovation to take advantage of high-growth areas, such as e-commerce, they could improve on existing e-commerce location demand with state-of-of-the-the-art facilities in-centered and eco-friendly warehouses. Additionally, they could improve the operational and supply-chain efficiency to help keep rising costs in check.

As long as storage continues to rise, management can fine-tune designs and structures to produce better results.  An interesting new addition would be state-of-of-the-the-the-the-art storage features, such as higher ceilings and multilevel facilities for increased density and more effective delivery systems. Finally, as tenants are using technology, it’s inevitable that they will need to enhance their access to reliable power sources such as rooftop solar. Emphasis on these elements may improve supply chain operations as well. Owner prosperity could be measured not only by how many warehouses they had, but also by how effective and sustainable they are.

Regional Outlook (Revenue, USD Billion, 2021 – 2027)

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
• Asia Pacific
  • China
  • Japan
  • India
• South America
  • Brazil
• Middle East and Africa (MEA)

Top Players in the industry are :

• American Tower |US
• Prologis|US
• Duke Realty |US
• SEGRO | United Kingdom
• Dexus |US

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