Industrial Is Only Heading Up, Up, Up

John Tipton is an operating partner at Allen Matkins.

LOS ANGELES—The industrial market is unstoppable. According to the recent Allen Matkins UCLA Anderson Forecast, which provides a three-year outlook of the industry, the industrial market has the most positive outlook among real estate professionals. In other sectors, namely office and multifamily, the market seemed to be softening; however, the industrial sector remains active and healthy for the foreseeable future.

According to the experts that participated in the forecast, ecommerce remains the chief driver of the industrial market, especially in infill markets. “The steady eddy is industrial. If you look at the industrial market, it has remained strong. That is somewhat, at least as far as the UCLA economists are concerned, is because of a profound shift toward ecommerce,” John Tipton, an operating partner at Allen Matkins, tells GlobeSt.com. “So many people are ordering are ordering so much stuff, and you need somewhere to put all of it. As a result, the industrial market has stayed really strong, and you can see that professionals in our survey were overwhelmingly positive and some cases are increasing in positivity.”