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Special Report

Industrial Midyear Outlook

Midyear 2021

Tenants Covet Space at Each Stage of Supply Chain; Investor Fervor Signals Long-Term Confidence

Comprehensive demand drivers strengthen outlook. The industrial sector is emerging from the health crisis well positioned to continue its upward growth trajectory even as the advancement of e-commerce returns to a more sustainable level of expansion. Elevated global trade and supply-chain upgrades during the second half of the year will lift storage requirements for some industrial users in port, hub and emerging markets. Moreover, rising consumer confidence levels and the recently accelerated pace of hiring may prompt more households to deploy built-up cash reserves, testing dual-channel retailers’ inventories and distribution networks. Together these factors have the potential to support a historically strong year for industrial absorption and investor demand while simultaneously boosting the overall economy.
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