Industrial absorption is expected to soar following the pandemicas a result of increased online shopping. According to a reportfrom CBRE, industrial absorption will hit 333million square feet nationally by 2022, more than triple theprevious forecast. The demand will also catalyze rent growth of5.7% annually. In the biggest industrial markets, like SouthernCalifornia, increased demand and absorption could also spur asupply shortage.

"Ecommerce-related industries will be the main drivers ofindustrial absorption in the foreseeable future, including consumergoods, cold storage requirements as well as some manufacturing,"Kurt Strasmann, executive managing director atCBRE, tells GlobeSt.com. "Ecommerce is the driver onmultiple levels. The emergence of all sectors of society buyingonline has accelerated the growth of online shopping behaviors on amuch boarder basis than in the past. We are payingparticular focus on cold Storage, which is just beginning to takehold, with a steady increase in demand likely as we moveforward."

In Southern California, rent growth has paused during thepandemic, but Strasmann anticipates strong rent growth through therecovery as a result of this surge in demand. "Although rent growthright now is for the most part on pause after years of tremendousincreases, once we get through the COVID-19 pandemic, we anticipatecontinued strong rental growth across Southern California, withClass A infill areas likely to see the biggest boost," he says.