January 9, 2017
The industrial market, fueled by the rapid growth of e-commerce, has been the juggernaut of U.S. commercial real estate in recent years. While that momentum eventually will wane, it isn’t expected to do so this year, according to a 2017 forecast for U.S. commercial real estate.
The report, “U.S. Industrial & Logistics,” produced by CBRE Group, Los Angeles, predicts the outlook for the U.S. economy in 2017 to be “mildly optimistic,” tempered by uncertainty about the ultimate extent and nature of the new presidential administration’s policies.
CBRE foresees the average U.S. industrial rent, which was on track to set a new all-time high by the end of 2016, increasing by roughly 5% in 2017. The company also expects net demand for new industrial space to continue to outpace the slow but steady increase in new construction, which it has each year since 2010.