Industrial absorption is expected to soar following the pandemic as a result of increased online shopping. According to a report from CBRE, industrial absorption will hit 333 million square feet nationally by 2022, more than triple the previous forecast. The demand will also catalyze rent growth of 5.7% annually. In the biggest industrial markets, like Southern California, increased demand and absorption could also spur a supply shortage.

“Ecommerce-related industries will be the main drivers of industrial absorption in the foreseeable future, including consumer goods, cold storage requirements as well as some manufacturing,” Kurt Strasmann, executive managing director at CBRE, tells GlobeSt.com. “Ecommerce is the driver on multiple levels. The emergence of all sectors of society buying online has accelerated the growth of online shopping behaviors on a much boarder basis than in the past. We are paying particular focus on cold Storage, which is just beginning to take hold, with a steady increase in demand likely as we move forward.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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