According to a recent Motley Fool article, the prime time to invest in industrial real estate “was about six months ago.” That said, the article notes that even now, investors can find opportunities within the industrial real estate market. While many of us lament the economic chaos and uncertainty brought on by the Covid-19 pandemic, the industrial real estate sector has only been strengthened by it. The result is severely reduced industrial real estate space availability.

Industrial Real Estate Demand is at an All-Time High

Multiple factors are driving the expansion of industrial real estate needs, which include:

• E-commerce market share and potential
• Global supply chain issues
• Costs of raw materials
• Labor shortages

E-commerce has enjoyed significant growth over the last decade, but the Covid-19 pandemic forced even more people into online shopping. The goods bought online still need to be stored and delivered though, and industrial spaces in the forms of fulfillment centers, warehouses, and shipping hubs provide critical e-commerce infrastructure. On top of e-commerce demand, ongoing supply chain issues concerning international imports have further increased the need for local manufacturing and industrial storage spaces. Even local supply chain problems have induced “just-in-case” warehouse needs.

While the influx in e-commerce and domestic manufacturing would be enough to drive up demand for these industrial real estate spaces, scarcity can also be attributed to a lag in the construction of new industrial real estate. Demand has far outpaced supply over the last twelve months, and experts point to labor shortages and raw material costs/shortages for explaining why new construction can't keep up with the need for industrial space.

When to Talk to an Experienced New York Industrial Real Estate Lawyer

High industrial real estate demand is here to stay for the foreseeable future. If you're curious about what this means for your real estate portfolio, you should speak to a knowledgeable NY real estate attorney with experience in the industrial real estate sector. The time to call is now, and for unparalleled legal guidance, call the Law Offices of Melvin Monachan, PLLC today at 347-389-1682, or contact us online.