Reshoring is poised to make over the red-hot industrial sector as geopolitical events and supply chain pressures roil the broader economic markets and challenge domestic manufacturers.

"Understanding that production and supply chains are complex systems that do not change overnight, we are looking at reshoring to be another contributor to the demand in industrial real estate, particularly in lower cost areas in the Southeast and Midwest," says Peter Kolaczynski, CommercialEdge operations senior manager. 

There are more workers in the manufacturing sector now than at any point since 2008, according to CommercialEdge, and the sector's employment growth exceeded 3% year-over-year every month this year, a pace not seen since November 1984. But reshoring will bring with it a unique set of challenges, the firm's analysts say, chief among them staggeringly low vacancy across major industrial markets here.  The national vacancy rate currently clocks in at 4.1%.

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