Annual industrial demand to hit 333m sf by 2022
Fueled by e-commerce growth, annual net industrial absorption will total more than 333 million square feet by 2022, leading to annual rent growth of 5.7 percent, according to the latest CBRE estimates. This is more than triple the previously forecast demand based on new metrics that CBRE Economic Advisors (CBRE EA) has developed using e-commerce data.
In the COVID-19 era, e-commerce is fueling industrial demand more than ever, so basing forecasts solely on traditional employment-based metrics is no longer enough. By incorporating e-commerce data into its industrial forecasting models beginning in first quarter 2020, CBRE EA is now able to more precisely forecast industrial rent, availability, absorption and construction.
The COVID-19 pandemic has resulted in significant gains in e-commer