We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Industrial and logistics segments to lead commercial real estate recovery

Industrial and logistics segments to lead commercial real estate recovery

But it will take years to return to pre-pandemic levels, mid-year real estate market outlook shows.

Industrial, logistics to leader commercial real estate recovery
August 6, 2020
DC Velocity Staff
No Comments

Industrial and logistics segments will help lead the recovery in commercial real estate activity following the coronavirus pandemic, but the outlook calls for a long road ahead, according to Los Angeles-based  real estate services and investment firm CBRE.

The firm’s Global Real Estate Market Outlook 2020 Mid-Year Review, released this week, shows that although the rebound for commercial real estate will lag that of the overall economy, a recovery will start this year and continue into 2021. Accelerating e-commerce activity will boost industrial and logistics markets, pushing it ahead of other business sectors, including office, retail, and hotel space. The multifamily housing sector will also lead growth, boosted by demographic trends that favor renting, according to CBRE.

“The blows that the pandemic dealt to the global economy this year were swift and significant, but we’re now set for a strong recovery starting in this year’s second half and extending through 2021,” Richard Barkham, CBRE’s global chief economist and head of Americas research, said in a statement about the report’s findings Wednesday. “Additional rounds of government stimulus are in the works to bolster economies, but let’s be clear, it will take years for commercial real estate activity levels to return fully to pre-pandemic levels. The recession likely will keep interest rates low for several years, which will maintain the flow of capital into commercial real estate. The arrival of a vaccine will greatly accelerate the recovery in real estate, but we can’t bank on that yet.”

The research underscores the importance of accelerating e-commerce activity to the warehousing and logistics sector. The authors wrote that a “surge in e-commerce will solidify industrial and logistics as a top-performing sector of commercial real estate, with modern, class-A, warehouses attracting most of the demand.” Additional demand will be driven by retailers adding more inventory to handle demand fluctuations and manufacturers diversifying their supply chains to reduce their dependence on China.

Although retail will lag industrial and logistics growth, key changes will help transform the way consumers shop, including curbside pickup services, which will become permanent options for many retailers, the researchers wrote.

KEYWORDS CBRE
  • Related Articles

    E-Commerce firm invests in state-of-the-art fulfillment center

    Study: companies convert idle retail sites to last-mile fulfillment facilities

    Lineage Logistics expands into Canada with latest international cold-storage acquisition

Recent Articles by DC Velocity Staff

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

Werner invests in autonomous trucking firm TuSimple

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 11 21 thumb

Ocean Sector Shaping the Next Shipageddon

DCV-TV 4: Viewer Contributed
If you're a shipper, it's never good when a rep for an ocean carrier tells you, "You better sit down before you read this." We've been seeing astoundingly high increases in the ocean sector and they seem to have staying power. While the ocean carriers used blank sailings last year to tip the balance of supply and...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing