Pandemic Accelerates Demand Trends for Industrial Property
Increased demand for industrial space, which has fared better than other real estate sectors during the pandemic, sets it up for more investment in the second half of 2020, according to a report from commercial real estate brokerage Marcus & Millichap.
The surge in online shopping due to the pandemic, along with renewed factory production and improvements in global trade in May and June, meant industrial real estate showed “encouraging performance” in the “volatile second quarter,” the report said.
Asking rents in most markets hit “a record high” during 2Q, thanks to tenant demand, newer buildings entering the market and tight supply. Based on preliminary 3Q leasing data, industrial tenants “are scooping up available square footage at a pre-pandemic pace,” according to Marcus & Millichap.