Commodities, Shortages and Inflation: What’s the Impact on Industrial Real Estate?







Record industrial real estate demand combined with aging building inventory has helped the sector maintain a record-level industrial construction pipeline. The recent commodity shortages and increased pricing could, however, slow down real estate developers, potentially driving already low vacancy rates down even further. These shortages are also making it difficult for industrial occupiers to source racking, material handling equipment (MHE), and other fixtures and machinery to get production or logistics facilities online. In this article, we examine the current commodities market and how it may impact industrial real estate going forward.

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