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The industrial evolution: Behind the growing demand for modern industrial real estate assets
- June 1, 2024: Vol. 11, Number 6

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The industrial evolution: Behind the growing demand for modern industrial real estate assets

by Michael Glimcher

Industrial real estate has historically been one of the best-performing major commercial real estate asset types and, as a result, has long been a preferred option for investors. Not all industrial real estate is created the same, however. Driven by a variety of forces, including ecommerce growth, reshoring trends, technological advancements and sustainability initiatives, today’s industrial real estate landscape is experiencing a surge in demand for “modern industrial” facilities that may help users reduce expenses, while optimizing efficiency and enhancing operational capabilities.

While a construction date of 2000 or later may be indicative, modern industrial real estate generally focuses more on the functionality of an industrial property than when it was built. For example, the previous standard for an industrial building’s clear height was 24 feet, but today buildings may have clear heights of 36 feet or more. At 36 feet, a property may hold 50 percent more capa

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