Technology is Carving Out Entirely New Industrial Markets

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NEW YORK—San Francisco has been a valued marketplace for many different asset types—just not so much industrial. Yet, as Newmark Knight Frank noted in a new report, that is rapidly changing.

Demand for Class A industrial space in the metro area has skyrocketed over the past three years, growing from fewer than 50,000 square feet of requirements in the market at the start of 2017 to more than 1.7 million square feet of requirements by the end of 2019, it said. In addition, over the past three years, asking rents for Class A industrial space have grown 35.9%. The market has responded, according to NKF: 1.1 million square feet of Class A industrial space has been developed or renovated in that time, and another 1 million square feet is proposed over the next three years.