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Industrial Sector Shows Continued Momentum through Midyear

September 4, 2020
Market Reports
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Industrial Sector Shows Continued Momentum through Midyear

By Amanda Ortiz

Industrial Sector Shows Continued Momentum through Midyear

Our latest report takes an in-depth look at the current state of the U.S. industrial market and explores what the rest of 2020 may bring. New industrial supply delivered during the first half of the year is up 33.5% from the same period last year, and while vacancy is trending upwards, the industrial market remains relatively tight with persistent demand in core markets. Construction delivery has also remained robust, with development activity nearly equaling product under construction at midyear 2019.

While the overall outlook for the industrial sector remains positive, the ongoing pandemic will cause lasting changes to the economic status in the U.S. that could affect activity in the second half of the year. Nevertheless, the future of e-commerce should have the industrial real estate market on solid footing through year-end with sustained demand for big-box buildings and final-mile distribution center

Economy Begins Slow Recovery Following Severe Downturn

U.S. Industrial Fundamentals Remain Solid

YTD Overall Net Absorption Stays Positive

U.S. Vacancy Rises for 4th Consecutive Quarter

U.S. Top 10 Rankings Q2 2020

U.S. Industrial Growth Markets

E-Commerce Tops List of Industrial Bulk Occupiers

Most Quarterly New Supply Since Q4 2018

U.S. Industrial: What’s Next?

COVID-19

RESHORING

  • Decreased reliance on China
  • Rising offshore costs/wages
  • Faster responsiveness
  • Reduce unemployment/create jobs

AUTOMATION

  • Artificial intelligence
  • Sophisticated mobile apps
  • IoT Connectedness
  • Collaborative robots (cobots)

MEET THE TEAM MEMBERS

Ward Richmond has over twelve years of experience specializing in industrial real estate, and has negotiated over 500 transactions while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

WARD RICHMOND, SIOR

Executive Vice President

COLE HOOPER

Senior Associate

ZACK RUTLAND

Senior Associate

KRISTINA RODRIGUEZ

Client Services Specialist

James Ewing

Associate

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ON THE ROAD AGAIN

Oct 14-15, 2020: Colliers International Conference, Nashville, TN

The Gladiator Group is supported by Colliers International Research Team

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email [email protected]