Industrial predicted to continue strong performance
Of all the major property types, industrial has performed the most strongly amid the COVID-19 pandemic. JLL recently forecast total U.S. industrial sale transactions in 2020 could reach as high as $85 billion.
The year ahead is poised to see continued strength in the industrial sector.
“We believe that the industrial sector is positioned to perform well in 2021 as well as over a long-term horizon,” says Jim Koman, CEO of ElmTree Funds. He notes strong ecommerce growth is driving increased demand from tenants for newly constructed industrial distribution and logistics facilities. Tenants are looking to quickly expand their supply chains to capitalize on this ecommerce growth and meet the shorter delivery times mandated by consumers.
“As a result,” says Koman, “fundamentals in the sector remain strong, as evidenced by continually positive leasing trends.”
According to JLL, a total of 71.3 million square feet of industrial space had been leased b