The commercial real estate industrial market has been experiencing significant changes in recent years, driven by advancements in technology and changes in consumer behavior. Here are some of the key commercial real estate industrial market trends to watch in 2023.
E-commerce and Last-Mile Delivery
The rise of e-commerce has led to a surge in demand for industrial space to support last-mile delivery. Companies are looking for warehouses and distribution centers located closer to urban areas to reduce delivery times and meet the growing demand for online shopping.
Advancements in automation technology are changing the way industrial spaces are designed and operated. Companies are increasingly investing in technology such as robotics and autonomous vehicles to improve efficiency and reduce labor costs.
Sustainability has become an increasingly important factor in the industrial market, with tenants and landlords looking to reduce their environmental impact and save on energy costs. This has led to a growing demand for green industrial spaces, which are designed to be energy-efficient and sustainable.
The shortage of industrial space in urban areas has led to the development of multistory warehouses, which offer more storage capacity in less space. These buildings feature multiple levels of warehouse space and vertical logistics solutions, allowing companies to maximize the use of their space.
Flexibility has become a top priority for industrial tenants, with companies looking for spaces that can adapt to changing needs. This means that landlords and property managers need to be more flexible with lease agreements and offer amenities such as shared spaces and flexible layouts.
Proximity to Ports
The location of industrial spaces is critical, with proximity to ports and other transportation hubs being particularly important. Companies are looking for spaces that are easily accessible to major transportation routes and offer easy access to ports and airports.
The pandemic has highlighted the importance of cold storage facilities, particularly in the food and pharmaceutical industries. This has led to a growing demand for cold storage spaces, which are designed to maintain specific temperatures and humidity levels to preserve the quality of perishable goods.
The commercial real estate industrial market is undergoing significant changes in response to advancements in technology and changes in consumer behavior. Companies are looking for more sustainable, flexible, and efficient industrial spaces that can adapt to changing needs. Landlords and property managers need to be aware of these trends and adapt to meet the changing needs of tenants.
National Lease Advisors is a leader in the lease administration sector of the commercial real estate industry. The firm focuses on clients with multiple locations both regionally and globally and helps them manage their lease contracts, and provides lease accounting, transaction management, and audit services.