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Real estate

Changing dynamics of industrial real estate

Ibrahiim Bayaan
Director of Research, Real Estate, Americas
Aerial view of an industrial park in a wooded area

Since the end of the Global Financial Crisis (GFC), the industrial sector has been the best-performing core property type, producing robust returns during an extended period of falling vacancy and strong rental growth.1

The COVID-19 pandemic accelerated these trends, leading to record-high demand and record-low vacancy rates starting in 2021 and early 2022.2

Overall rent growth seems to have exceeded historical norms in every period where vacancy falls below historical averages.”

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Endnotes

Sources

1 NCREIF 2023
2 Costar 2023
3 Moody’s Analytics 2023
4 Prologis Global Insights 2020
5 Green Street 2023

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