Another Record Year For Industrial
With both domestic and global e-commerce sales growing aggressively, data from the US Department of Commerce’s International Trade Administration estimates that global cross border e-commerce sales will triple by 2020. The latest data from the Census Bureau of the Department of Commerce estimates that US e-commerce sales in the third quarter of 2017 increased by 3.6 percent from the previous quarter, and still represent less than ten percent of total retail sales as aggressive growth continues. Third party logistics providers and wholesalers are expected to increase space requirements to keep up with the demand from traditional retailers, e-commerce, and a general increase in demand for goods stemming from strong overall economic activity, as indicated by the ISM manufacturing index’s second highest reading in six years, US consumer confidence nearing 17-year highs, and 4.1 percent unemployment, to name a few. Strong seaport and rail traffic volumes, courtesy of the increasing popularity of online shopping, will also contribute to increasing space demand. All of these factors have contributed to helping industrial real estate continue to post record occupancy, rents, net absorption, and construction, making it the strongest performing real estate sector and a favorite among investors. .
Have future reports delivered directly to your inbox - click here to subscribe to this and other regional e-mail delivery lists.