2021 U.S. Industrial Investment Outlook
Consumer behavior drives sector’s upward movement. The rapid growth of e-commerce ranked the industrial market as the nation’s top performing commercial real estate segment before the pandemic. The health crisis has since augmented the evolution of the sector, cramming multiple years of expansion into a three-quarter stretch. Entering 2021, the industrial sector will continue its upward trajectory even as the advancement of e-commerce returns to a more sustainable level of long-term growth. A more permanent shift in consumer behavior will enhance online platforms’ role in the retail landscape, prompting multichannel merchants, wholesalers, and logistics firms to broaden operations. Steady demand for warehouse and distribution space should emerge as a byproduct, spurring a refilling of what is already a robust development pipeline.