Industrial market continues to attract attention
U.S. industrial properties have seen leasing and sales velocity exceed pre-pandemic levels, as changes wrought by COVID-19, as well as investors’ flight to safety, have accelerated pre-existing trends in the segment.
Experts note industrial leasing has continued to experience strong momentum throughout the pandemic. Unlike other property types, the industrial market has seen strong absorption throughout 2020 and continuing into 2021. According to Transwestern, the industrial sector had 104.1 million square feet of positive net absorption in the first quarter — the second consecutive quarter that absorption exceeded 100 million square feet.
“It’s logical to attribute this to ecommerce distribution and warehousing, but in reality, we’re seeing every type of industrial property experience this heightened demand,” says John Mase, CEO of IRG.
Lindsey Sugar, senior managing director of capital markets at Elion Partners, agrees. She says Elion Partners has