Phoenix and Denver registered some of the highest transaction totals among non-primary markets. Other secondary markets like Minneapolis, with very low vacancy, and San Diego, a life science hub, also accounted for a sizable number of deals.

Manufacturers, retailers and merchant wholesalers maintained inventory levels for 2Q compared with a year prior–but panic buying at the pandemic's onset has highlighted the limitations of maintaining only just-in-time inventory, which will benefit long-term demand for warehouse space, the report said. Retailers and suppliers have increased inventories of essential goods and medical products, it added.

Relatedly, the surge in online shopping in 2Q has increased the need for timely delivery. Grocers and retailers selling basic goods have started leasing last-mile facilities in cities and suburbs to shorten delivery times, according to the report.

Dollar General is leasing three cold-storage facilities to expedite distribution, while Albertsons, Shoprite and other regional grocers are deploying micro-fulfillment centers with highly automated order-picking, it said. Walmart and other large retailers that plan to offer subscription plans guaranteeing same-day delivery could also turn to last-mile warehouses.

Since land for fulfillment centers is scarce in high-population centers, there are opportunities to convert retail or office properties into single or multi-tenant industrial facilities, according to Marcus & Millchap.

Global supply chain disruptions from the pandemic also accelerated a longer-term trend toward increased domestic manufacturing instead of relying on imports, which could increase demand for production facilities.