The industrial property market was in full-on growth mode in 2016, and remains poised for another impressive year driven by improving
underlying economic and consumer trends. Real GDP demonstrated promising growth in the second half of the year, expanding at a 2.5-
3.0% annualized rate, but growth on the year is estimated at just 1.6% per the Bureau of Economic Analysis. Rising wages (2.9% YoY) helped spur consumer confidence to the highest level since 2007, driving projections for increased spending, which is an important metric for industrial property demand. E-commerce is growing between 15-20% annually, disrupting typical logistics chains and forcing internet retailers to fill in their geographic gaps. Looking ahead, industrial players should stay aware of potential legislative impacts on the sector, particularly the Trump administration’s commitment to infrastructure improvements, trade reform, and corporate repatriation. The Raleigh-Durham labor market continues to outperform national employment statistics, with unemployment of 4.1% and job growth of 2.9% in the Triangle. Past and forecasted improvements to these fundamental industrial indicators should bolster confidence in both owners and occupants of industrial assets.
Source : Cushman & Wakefield