The outlook for the industrial big box sector remains strong despite headwinds that include scarcity of suitable land, skyrocketing rents and ongoing supply chain woes. 

"Supply chains will continue to be modernized as companies keep more inventory on hand, prompting the need for more logistics space. This bodes well for the future of industrial construction, industrial conversions and multi-story warehouses," Colliers analysts note in a new report. "Despite the rare headwinds to the industrial sector, the big-box market remains poised for continued growth. The North American economies continue to recover from the pandemic-related challenges, which will benefit the big-box market for years to come."

The US industrial market set records last year for occupancy gains, new supply and rent growth, and new development also hit new highs as nearly 185 million square feet of big box space was delivered in 2021, according to Colliers.  Nearly 298 million square feet of new product was under construction at the end of the year as well.  And demand remains high, fueled in large part by e-commerce, which accounted for just over 13% of non-automobile retail sales in 2021 and is expected to balloon to 23% by 2025.