Brokers said industrial would be the hottest market in 2018. Were they right?

In the 2018 DNA of #CRE Broker Predictions survey, brokers predicted that industrial would be the hottest market of 2018. NREI thought so too. Were they right?

Were brokers right about industrial?

Some evidence indicates that brokers were correct in their prediction, including a “thriving” industrial sector across the midwest, a hot cannabis sector in Canada and banking’s favorability toward industrial property lending.

Industrial is hot across the midwest

According to RE Journals, industrial sales in the Midwest totaled $5.6 billion in the first half of 2018, where this sector is said to be “thriving.” Across the rest of the country as well, industrial sales are up 28.2 percent over 2017.

Canada’s cannabis sector is “scooping up” industrial spaces

According to Real Estate News EXchange, “Commercial property firm JLL estimates Canada’s eight largest cannabis companies alone will require more than eight million square feet of industrial space for cultivation within the next two years, not including logistics and distribution centres.”

Industrial is banking’s “new sweetheart property type”

And according to NREI Online, core market warehouse and distribution centers, refrigeration/cold storage centers, flex buildings, manufacturing properties and R&D facilities are taking special preference for lenders, leading them to give special interest rate discounts for these properties.

The technology making industrial hot

With some cutting-edge developments in tech making many industries more efficient and profitable, it’s no wonder that industrial real estate is seeing a rise in popularity.

  • Smart buildings and the Internet of Things – The combined power of IoT and smart building technology is making the entire transaction process more efficient, from manufacturing to warehousing to shipment.
  • Artificial Intelligence (AI) – Many manufacturing, warehousing and distribution centers are automating with robotic technologies that can complete industrial tasks in less time.

Download the DNA of #CRE Broker Predictions paper and the 2017 DNA of #CRE Broker Report for more insights into the industry direct from brokers. Additionally, stay up to date with our blog for more of the latest CRE developments in industrial and other sectors, including how they relate to modern tech developments.

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