Across the United States, market modernization faces a host of obstacles that range from land constraints, regulatory and entitlements challenges, labor shortages, pricing concerns, and supply chain congestion in the industrial sector, according to Newmark.
Many of these issues will continue to be exacerbated in 2022 by lingering effects of the pandemic and geopolitical volatility and will have an adverse effect on timely supply additions to the market. For most markets, there is no better time to embark on a new development project from a timing, cost and demand perspective.
The sourcing of materials and labor continues to prove challenging and pricy, and land prices have risen swiftly across the country. Some costs may moderate in the next 12 months, but the cost of capital is certain to rise incrementally from historic lows as the Federal Reserve plans multiple rate hikes in 2022 following the initial 0.25-percent rate hike in March.
Despite challenges to get
