“Industrial real estate sales volume continues to set the pace for the commercial investment industry as a whole in the United States. In regards to a global scale, sales volume has remained fairly stagnant comparative to 2017. With vacancy rates at an all-time low, property owners have their eye on tenants with great credit rather than a promise of higher rental rates. The ball remains in the landlords’ court at this time in the market.
With industrial demand and need for efficiency in related e-commerce businesses, competition and innovation in warehouses remains rampant. Technology is advancing to keep up with this efficiency and productivity in the form of high ceilings, air conditioning, robotic conveyor belt systems, radio frequency identification, and artificial intelligence, e.g. “smart warehouses.” In most instances, the tech improvement costs land with the tenants, either through tenant-improvement allowances or such costs being amortized over the lease term. Although these upgrades may seem to negatively affect job availability in the United States, these types of skilled workers are lacking in availability.”