New demand for industrial real estate is emerging asinternational trade continues to morph in response to varioustrends, according to the 2020 CBRE Research Global Trade Report. Inaddition, the coronavirus pandemic is accelerating many of thesetrends.

Companies have diversified their supply chains in recent yearsdue to trade and geopolitical tensions, technology advancement andincreasing transportation costs. As they go through these changes,consumers are increasingly purchasing goods online, making it evenmore important for companies to keep greater and diverseinventories closer to their end location. Most recentlythe pandemic led to inventory control failures and companies arenow more concerned with having enough inventory to support moreonline orders.

All of these factors—which include inventory controls,consumer habits, population growth and transportationstrategies—are creating additional industrial real estateopportunities in the Southeast US, Mexico, Mediterranean portmarkets in Europe, Vietnam and Asia, where increased infrastructurespending and modernization is already taking place, the reportsaid. Trade giants China, the Western US, and northern seaports ofEurope will continue to be global leaders.