{"id":1004593679,"date":"2022-07-25T07:27:00","date_gmt":"2022-07-25T15:27:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004593679"},"modified":"2022-12-09T00:08:13","modified_gmt":"2022-12-09T08:08:13","slug":"phoenix-investors-frank-crivello-whats-driving-demand-for-industrial-space","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/phoenix-investors-frank-crivello-whats-driving-demand-for-industrial-space\/","title":{"rendered":"Phoenix Investors\u2019 Frank Crivello: What\u2019s Driving Demand for Industrial Space?"},"content":{"rendered":"

\"\"<\/a>An ongoing e-commerce<\/a> boom has caused an unprecedented demand for fulfillment space, resulting in record low vacancy rates across the U.S., not to mention skyrocketing asking prices and rents. Despite some signs of cooling demand<\/a>, it\u2019s unlikely that supply and demand will even out this year\u2014and maybe not next year, either. With e-commerce leading the charge and retail giants snapping up available properties at every opportunity, other industrial real estate users have struggled to find viable space.<\/p>\n

Who Else Needs Industrial Real Estate?<\/h2>\n

While e-commerce fulfillment might dominate headlines and account for the largest portion of demand, other business types also require industrial real estate<\/a> to operate. Here are some of the other verticals driving up demand for industrial space:<\/p>\n

Manufacturers<\/h2>\n

Rumors of a U.S. manufacturing renaissance have persisted for decades, with little tangible activity to actually show for it. Now, however, U.S. businesses have suffered years of pandemic-related supply chain disruptions on top of already-tense trade relations with China. As a result, companies have begun actively taking steps to reshore<\/a> their production assets and eliminate the complexities of global trade from supply chains.<\/p>\n

Additionally, many U.S. businesses have chosen to source from U.S.-based manufacturers rather than continue relationships with unreliable overseas suppliers. This influx of business has created expansion needs for many U.S. suppliers, further contributing to the spike in demand for industrial properties.<\/p>\n

Transportation<\/h2>\n

E-commerce demand, port backlogs, supply chain restructuring, and numerous other factors have created strong demand for transportation capacity in recent years. Trucking and rail carriers rely on industrial properties for numerous purposes, including:<\/p>\n