Special Report

Industrial Health Crisis Special Report

April 2020

Warehouse and Distribution Centers Partially Insulated From Health Crisis; Investors to Consider Industrial as Diversification Option

Most industrial properties are impacted less than other property types. As the national stay-at-home orders have shifted much of the economy into a delivery model, the negative implications are broadly felt, including in the commercial real estate arena. Offices, restaurants, hotels and most other retailers have been forced to close their doors to avoid overwhelming the nation’s healthcare system. Apartment operations could suffer if employment fails to rebound quickly. Warehouse and distribution centers, however, are in a relatively favorable position as much-needed supplies are funneled through a smaller supply chain. As a result, these properties are expected to weather the health crisis better than most others regardless of the length of the downturn.
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