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.
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.
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.”
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.
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.
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.