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- February 1, 2018: Vol. 30, Number 2

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Industrial named strongest property sector of 2017

by Andrea Zander

Industrial has emerged as the strongest property sector and the new favorite among investors due to robust fundamentals, including record occupancy and rents, as well as net absorption and construction, reports Colliers International. The sector is booming because occupiers are expanding and modernizing their distribution channels to meet rising demand courtesy of the strong economy and the rapid rise of e-commerce sales, layered on top of strong seaport and rail traffic volumes and manufacturing, all of which are experiencing year-over-year growth this year.

Colliers expects the industrial sector to continue to prosper in 2018 with record construction and asking rental rates, strong absorption, and rock-bottom vacancy rates. Demand from retailers will remain robust, but the biggest increases in space requirements are likely to come from wholesalers and third-party logistics providers, which must expand the size and locations of their distribution centers to keep pace with in

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