New Report: Scarcity Drives Unprecedented Industrial Space Demand

February 24, 2022

The NAIOP Research Foundation has published the NAIOP Industrial Space Demand Forecast for Q1 2022.

Key Takeaways

  • Demand for space is currently outpacing the supply of new product. Rents have correspondingly increased rapidly, and many firms simply cannot find space to lease. The scarcity is so great that firms are getting creative by renting properties that can be adapted to serve their purposes, locating facilities further away from their final destinations and building vertically.
  • The forecast authors predict that the total net absorption of industrial space in 2022 will be 401.4 million square feet with a quarterly average of 100.4 million square feet. In 2023, the projected net absorption is 334.1 million square feet with a quarterly average of 83.5 million square feet.
  • The solid upward revision of the 2022 forecast can be attributed to retailers and manufacturers expanding their inventories to avoid future supply shortages and the expected good performance of the economy in 2022 and 2023.
  • Overall, while many share concerns over the future of the economy, the current state fosters continued growth in demand for industrial real estate.
Read the report »