Low interest rates, healthy consumer spending and strong e-commerce are forming good conditions for industrial and logistics real estate growth in 2017, says JLL, an investment management firm that offers real estate services. Potential investment in infrastructure and continued company expansion are also expected to fuel demand for warehouses and distribution centers despite global economic uncertainty.
Industrial and supply chain real estate occupiers and investors alike experienced a record-breaking year in 2015 and should expect this trend to continue well into 2016, according to a JLL logistics survey report. Strong demand for logistics facilities is expected to remain consistent globally during 2016. Rental growth is projected to continue across all markets of the world in 2016 and through 2017.
Distribution centers near the nation's top seaports are bursting with consumer goods and other cargo - and that's before the Panama Canal extension opens next spring. Distribution center and warehouse occupancy levels have reached historic highs, while expensive construction and labor costs keep new development sparse in many seaport industrial real estate markets.