The industrial real estate services and investment management firm said it anticipates low interest rates, healthy consumer spending and strong e-commerce will boost industrial and logistics real estate growth in 2017.
Industrial real estate services and investment management firm JLL anticipates strong industrial and logistics real estate growth in 2017, driven by low interest rates, healthy consumer spending and strong e-commerce.
JLL said that despite economic uncertainty, potential infrastructure investment and ongoing company expansion are expected to fuel demand for warehouses and distribution centers.
“With new construction still trailing demand, not only will we see ground up development across major markets, but we will see creative and adaptive re-use of assets, a rise of infill development and the introduction of multistory construction in or near urban locations,” JLL Industrial Group President Craig Meyer said.
“The only safe prediction for 2017 is that many things are going to change. There are numerous factors that could impact the freight movement industry next year and beyond, ranging from changes in trade policies and regulations to specific issues that affect how goods are transported,” JLL Chief Industrial Economist Walter Kemmsies said. “However, the need for infrastructure investment and the continued proliferation of e-commerce will keep industrial real estate booming.”
JLL named five factors that will impact the sector in 2017, including:
• The infrastructure revival, in which infrastructure upgrades will lead to the establishment of new warehouses;
• E-commerce and urban logistics continuing a rapid evolution;
• Ports benefitting from both infrastructure updates and e-commerce;
• Institutional investor interest being higher than ever;
• And the increasing amount of creative industrial real estate development.
JLL: Industrial, logistics real estate to grow in 2017
