Movement in the industrial real estate sector has skyrocketed over the past year largely due to the increase in e-commerce during the pandemic. But is the growth we saw during COVID a misleading indicator of future market movement?

The demand from online retailers pushed businesses to acquire additional space immediately, bringing approximately two years’ worth of growth in e-commerce warehousing within a single quarter. The demand, along with the lack of supply, pushed rental rates to a premium. But the initial spike cannot be a clear indicator of where the sector would have gone if it had not been affected by a global pandemic.

Flexibility is the key in a time of unpredictable spending trends. If you are an e-commerce company looking for short term warehousing due to demand, make sure to get aggressive on rates and lease term and forecast your growth considering the post-COVID market.

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And if you have any questions about the leasing industrial space, please reach out to Rokos Advisors today. We are here for you and happy to help.