NewsUS commercial property price growth continued its upward trajectory in February with all four major property types posting double-digit annual price growth. Leading the way was the industrial asset class, whose prices climbed 28.5% from a year prior, the fastest annual rate among the major property sectors in February.
COVID, Russian War Wreck Supply Chain
Another unforeseen driver has been the disruption in global supply chains. This has forced companies to adopt new inventory strategies, shifting from ‘just in time’ to “just in case,’ an inventory surplus model that requires additional warehouse space to effectively maintain, Anthony Amadeo, vice president of Woodmont Industrial Partners, tells GlobeSt.com.
“The shift led industrial tenants into a leasing frenzy, pushing warehouse vacancy to unprecedented lows and rents to all-time highs, creating what is the leading and most stable commercial real estate asset in our post-COVID world.”
Now the Ukraine-Russia war is adding to the disruption in the international supply chain, says Peter L. Curry, Esq., Farrell Fritz, P.C. “We are starting to see industrial space being utilized again for parts and raw goods,” he tells GlobeSt.com. “Corporations that have dedicated their manufacturing processes to ‘just in time’ completion of goods are taking a fresh look at maintaining inventory to shield themselves from the effect of global logistical bottlenecks.”
Read the full article on GlobeSt.com here:
