Real Estate

The research paper, entitled “Future Proofing the Global Supply Chain:  How AI, Automation and Other Technologies Are Impacting Efficiency,” noted that logistics real estate investments outpaced revenue growth by 57% over the past decade despite advancements in automation and data analytics, which it labeled “the supply chain productivity paradox.”

Report, “Industrial Occupiers Experiencing Sticker Shock at Lease Expiration,” pointed to how strong demand and new construction delays have reduced the industrial vacancy rate down to 3.6% in the third quarter, whereas annual rent growth increase a record-high 10.4%.

More than 137.9 million square-feet (MSF) of industrial product was leased, a new 2021 high, according to data recently issued by Los Angeles-based industrial real estate firm JLL, in its “Q3 Industrial Report."

Prologis releases new supply chain research; hosts inaugural thought leadership event

Faced with product shortages, today not only are shippers looking to replenish shelves, but the movement from just-in-time inventory management to safety stock arrangements is causing an uptick in storage needs.

In its “Q1 Industrial Outlook,” JLL Director of U.S. Industrial Research Mehtab Randhawa wrote that e-commerce continues to be a trending topic of discussion, with demand from this industry driving the bulk of industrial leasing, with the caveat that leasing volumes are starting to normalize following an anomaly year.

Interact Analysis study also estimates global warehouse and fulfilment center footprint will require a 50% increase in staffing by 2025

The report, entitled, “Forever Altered: The Future of Logistics Real Estate Demand,” points to various trends and themes related to how the pandemic “has forever altered the logistics real estate landscape,” with supply chain decisions having become more holistic, more data-driven, and more urgent

The report, entitled, “Forever Altered: The Future of Logistics Real Estate Demand,” points to various trends and themes related to how the pandemic “has forever altered the logistics real estate landscape,” with supply chain decisions having become more holistic, more data-driven, and more urgent than at any point in the past, coupled with how urbanization, digitization, and demographics have changed the ways in which people live, work, and shop.

In its “United States Industrial Outlook - Q4 2020,” JLL explained that increased e-commerce activity translated into what it called a steep rise for warehouse space.

Despite the scares COVID-19 has hurled on other industries, e-commerce has ensured high demand for warehousing, distribution and fulfillment.

The report, entitled “Q4 2020 U.S. Industrial & Logistics Real Estate Figures,” observed that the fourth quarter represented the strongest quarter on record, adding that it capped off a year of robust demand, with the outlook for 2021 looking very healthy.

Report by industrial real estate firm JLL finds that e-commerce represents 13.4% of total leasing for the third quarter

The report noted that third quarter industrial leasing came in at 114 million square feet and was paced by e-commerce (15.3 million square feet), logistics & distribution (14.3 million square feet), and 3PLs (7.1 million square feet), as well as traditional retailers (7.1 million square feet), construction materials & building fixtures (9.9 million square feet); manufacturing (2.1 million square feet); and food ands beverage (6.1 million square feet).

The CBRE report, entitled “Distribution Hubs Will Benefit from Increased Business Inventories & Supply Chain Restructuring,” said there could be a need for an additional 400 million-to-500 million square feet of industrial real estate space. That tally, according to CBRE Research, would be the rough equivalent of a 5% increase in business inventories.