Why Industrial’s Trajectory Will Keep Surging
March 30, 2022
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.”
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