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Analysis

How Some Industrial Developers Are Dealing with the Land Crisis

There seems to be a virtually unlimited need for warehousing and logistics. What happens when there’s not enough land to build on?

By Erik Sherman | July 26, 2022 at 08:20 AM

Need a warehouse? Get in line—one that keeps growing longer.

Getting enough industrial space built has become a big problem and looks like it will continue to be one. Blackstone expects record-low vacancies in industrial to continue because supply can’t keep up with demand. Inflation and the Fed’s push to drive up interest rates, increasing financing expenses are part of the reason. Another is continued critical materials and labor shortages. Then there’s the availability of land. There’s only so much land to go around, particularly in hot urban markets, whether you want a major staging warehouse or infill for secondary distribution and last-mile services.

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