Fifty years from now, people will talk about two time periods: before the pandemic and after the pandemic. Since early 2020, daily life has changed in more ways than we can count, and industrial real estate has changed alongside it. According to a recent Forbes article, e-commerce grew exponentially in the early pandemic months. That growth has changed IRE forever.
The biggest driver of IRE growth was the need for warehouse space resulting from online shopping. When COVID shutdowns and social distancing guidelines forced people inside, they turned to online deliveries, and they haven't looked back. Although the demand for industrial warehouse space remains at an all-time high, other markets are still in flux at nearly every level. Inflation, supply chain issues, workforce woes, and work-from-home policies have yet to stabilize in a post-COVID world.
Industrial Real Estate Space Isn't Just for Traditional Storage
The supply chain issues that continue to plague our economy haven't just led to supply hoarding; they've also spurred companies into developing industrial spaces that can accommodate manufacturing. The rationale is that smaller, more spaced-out manufacturing plants could help shore up the supply chain issues.
In addition to traditional goods that require storage, there's been an increased focus on specialized storage space needs. For example, when the Covid vaccines were rolled out, they had to be housed within a specific temperature range. There's also been an uptick in the need for freezers and cold storage suitable for perishable food items.
What is the Industrial Real Estate Outlook?
In some respects, the COVID-19 catalysts that spurred the industrial real estate boom have eased. That said, most are still enjoying the convenience of online shopping, and given the state of our fragile supply chain, an increase in manufacturing sites seems a good idea.
If you have questions or concerns about your interests in the industrial real estate market, or you need legal help with foreclosure defense, contact the experienced NY real estate attorney at the office of Melvin Monachan, Attorney at Law. To learn more, call (347) 389-1682 today, or contact us online.