REAL ESTATE

UPDATE

The industrial real estate market , generally defined as manufacturing facilities ; fulfillment centers ; warehouses ; last-mile logistics ; and self-storage facilities , has seen an extended period of growth from 2019 through 2023 fueled by the incredible demand for online purchases driven by the pandemic . Over the past ten months , the industry has seen vacancy normalize and construction starts slow due to higher inflation and interest rates . Underneath that short-term reality , recent political policies such as the Inflation Reduction Act are working to boost US manufacturing through incentives to onshore and re-shore these job-producing facilities that should fuel momentum in the industry for years to come . Annualized manufacturing construction spending has increased 300 percent over the past three years reaching $ 233 billion in April 2024 . This wave of spending has pushed the current manufacturing pipeline to 40 million square feet of space ( msf ) under construction - accounting for ten percent of all industrial space currently being built across the US .