Research - SEPTEMBER 10, 2020

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Changing patterns of trade benefit U.S. industrial real estate

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More companies are adopting a “China-plus-one” supply chain strategy, which shifts some production away from China to other lower-cost export countries, to protect the flow of international trade, according to CBRE.

The impetus for this shift is increased costs from higher U.S. tariffs on Chinese imports, coupled with certain supply chain disruptions that occurred at the onset of the COVID-19 pandemic. And labor costs in China have risen, reflecting the growth of the middle class and population migration to urban areas.

Vietnam positioned to take advantage

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