Industrial Demand Remains Strong. Can Supply Catch Up?

The rising share of e-commerce within retail has led to a prolonged period of high demand in the industrial sector. With industrial demand surging, the resulting low availability and high rent growth should continue to drive a strong supply response. However, some key risk factors could impede the pace of supply growth in upcoming years. 

In the short term, materials shortages and rising construction costs have caused some temporary disruptions to supply growth. Over the long term, construction wages, limited land availability and local and federal regulation remain risk areas for builders and developers.