RCM, a part of LightBox, partnered with SIOR for the third year to gauge the industrial investment market. This study was compiled through a survey of RCM principals, SIOR members and subsequent interviews with key industry leaders.
- 10% annual growth expected in e-commerce, which is driving warehouse and distribution activity
- Land constrained markets expecting rent growth are Miami, NYC/New Jersey, and parts of Southern California, among others
- Speculative construction still strong, with concerns about overbuilding in select markets, according to 51% of survey respondents.
- Further cap rate compression expected in select markets.
The overall findings of the 2019 Industrial Report show many signs of strength heading into 2020, given the ongoing expansion of e-commerce, rising rents, record absorption and low vacancy rates.