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Yardi Matrix Sees Industrial Demand Holding Strong for Years
Industrial real estate has continued to thrive throughout the pandemic, leading Yardi Matrix to analyze whether the segment is experiencing a bubble or if growth will continue for the foreseeable future. Thanks to macroeconomic variables including retail sales, housing starts and personal income, Yardi Matrix believes industrial’s growth will continue.
“Those factors are projected to continue to grow robustly through the middle of the decade,” say analysts. “Given the strong historical correlation, we believe that demand for industrial space will continue unabated for at least several more years.”
The Matrix forecast calls for a 2.0% to 2.3% annual increase in total stock over the next five years, which would generate between 350 million and 370 million square feet of new industrial space each year through 2026. That follows the more than 290 million square feet that has been delivered annually since 2018, peaking at 306 million square feet in 2020.
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