Mid-Atlantic Research Reflections 2022 - Industrial

The Mid-Atlantic industrial market has recorded sustained demand and strong market fundamentals through 2022. Structural shifts in U.S. consumer spending habits have highlighted the need for safe investments and additional inventory capacity for many key occupiers. A 10-year trend of growth has been accelerated by recent global events including the COVID-19 pandemic and the Russia-Ukraine conflict, which both created extreme strain on global supply chains. Major retailers and distributors now see newwarehouses as the most cost-effective solution to supply chain challenges.

As shipping and transportation become increasingly difficult tasks for retailers and manufacturers, 3PLs have recorded a marked spike in demand. While a major focus has been placed on last-mile facilities within major population centers, much of the recent net absorption in major markets has occurred in the periphery of those population centers, or in tertiary markets nearby.3PLs focused on bridging this gap have been driving leasing activity in these strategic submarkets.