C&W | What's Next For Industrial Investors

ENG: Although the COVID-19 pandemic in 2021 brought on new challenges for the industrial market—with port congestion, materials shortages, and commodity pricing skyrocketing—the market has and will continue to excel.
Cushman & Wakefield’s “What’s Next for Industrial Investors” report examines U.S. and North American industrial markets—summarizing 2021’s robust results despite COVID-19 challenges, ups and downs in Q1 2022, as well as looking forward to continued growth into 2023. Included is information on e-commerce, logistics, access to port cities and rail, energy costs, Amazon and FedEx, and rent growth, as well as results from an annual investor survey on the decision-making process in selecting overall capitalization rates and identifying key core markets.

KEY FINDINGS FROM ANNUAL INDUSTRIAL INVESTOR SURVEY:
Assets with long-term leases with credit are in the highest demand and command the most aggressive pricing, especially in the core U.S. markets.

Class-B and some Class-C assets in secondary/tertiary locations are in greater demand as investors seek higher returns.   

Acquisitions are moving forward with plenty of dry powder available to close quickly. 

The U.S. industrial market is not overbuilt.

Solid rent growth is anticipated for the remainder of 2022 and into 2023.

Manufacturers are increasing depleted inventories as supply chains ramp up.

Supply chains are moving forward and will lead to more e-commerce online shipping.

Minimal concern is seen with the anticipated interest rate hikes relative to pricing.

Logistics, food and beverage, cold storage and bio-tech/pharma assets are preferred.
Fundamentals are in place, supporting a solid 2022 industrial outlook. 

Full report can be downloaded here