Industrial Development Accelerates to 5-Year High

Last year was challenging for everyone as the world seemed to come to a halt. But, the transition to sheltering-in-place and working from home was helped immensely by the availability of two-day or same-day shipping — powered by a robust and growing industrial real estate market. In fact, the logistical backflips necessary to meet the surge in demand throughout the pandemic also advanced the e-commerce industry even further into the future.

CommercialSearch’s 2021 industrial pipeline report analyzed data provided by CommercialEdge to see just how much industrial space was projected to be delivered this year across the country — and the answer is a lot. More than 1,000 properties in the U.S. are set to deliver 342 million square feet in 2021. That’s the most in the last five years and an increase of 24% over 2020, which saw 915 properties delivered totaling 276 million square feet.

Click to enlarge.

Most of the space being added is in the south and west, with the Dallas-Fort Worth metroplex leading the way with nearly 28 million square feet of industrial space across 81 properties. This accounts for 8% of the total added space in the nation.

Further south in the Lone Star state, Austin and Houston are each adding more than 10 million square feet, as well. And, although Houston is adding 41% less industrial square footage than it did last year, Austin is making up for it by adding 511% more industrial square footage than last year. The latter is due to two projects that make up more than half of the space to be added: Tesla’s Giga Texas and a new Amazon fulfillment center in Pflugerville. Elon Musk’s new Austin facility will be a whopping 4 million square feet and the main manufacturing facility of the Cybertruck and the Tesla Semi. Meanwhile, Amazon’s new fulfillment center — owned and developed by Seefried Industrial Properties — will be 3.8 million square feet.

Notably, of the 10 largest industrial properties to be delivered this year, Amazon will occupy eight of them and own four outright, the largest of which — a 4-million-square-foot fulfillment center — will be in Colorado Springs and one of Colorado’s largest buildings once completed.

Click to enlarge.

Meanwhile, Phoenix is set to add the second-most industrial space in the country — 18.4 million square feet. The metro will also be home to a new robotics facility in Goodyear, Arizona. The fulfillment center is set to add 2.3 million square feet of industrial space to the Phoenix market later this year.

However, while 2021 looks to be a banner year for industrial construction, there are still challenges. Global supply chains have been shaken deeply and when demand exceeds supply, it can have imbalanced economic effects. For instance, as demand increases, many of the prime industrial properties with the necessary attributes — like high-velocity cross docks and a location near main traffic corridors — are being snatched up quickly and raising prices, thereby pricing out smaller would-be buyers.

The good news going forward is that industrial buildings are built relatively quickly compared to other types of buildings — taking just 80 days, on average — and investments tend to be more stable. Moreover, many of the businesses that occupy industrial buildings were considered essential during the pandemic and, as a result, didn’t close, and e-commerce companies actually thrived.

Overall, this year is looking bright for industrial real estate as demand is high. And, as global supply chains even out and catch up — and e-commerce continues to accelerate — absorption appears to be keeping pace with construction.

97 Responses

  1. That’s a very good post, This post give truly quality information, I’m definitely going to look into it, Really very useful tips are provided here.

  2. Industrial development features the key monetary strains of industrialist social orders. The contributions of innovation and work at the worksite have a quantifiable market esteem, yet the lead of production itself relies just upon their subjective use esteems. Put another way, financial backers and monetary organizers follow the trade upsides of the assets resolved to make and of the yields disseminated on the lookout, yet business achievement relies upon the different snapshot of using the substantial assets and representatives at the worksite. Entrepreneur social orders differ in how much their frameworks of account and the executives center around the need to overhaul innovation at the worksite from just a momentary monetary point of view, and how much the specialized drive to improve efficiency steers interest by its own doing.

  3. Magnificent beat! I wish to apprentice whilst you amend your web site, How could i subscribe for a blog web site? The account helped me a appropriate deal.

  4. I needed to thank you for this incredible read! I like each and every piece of it. I find it very interesting and informative. I can’t wait to read lots of your posts.

  5. Generally an awesome blog. Thanks for sharing this information. If you would like some more information about us. Check our link name.

  6. In a world full of bad news, this some good news to shed some light on the economy. Unfortunately the damage is done, and will experience a crash like no other. I for one, am prepping with my company.


  7. We’ve seen it here in the inland empire and modesto as well. Alot more people are investing in rural areas since most of those counties have lower tax rates as well as zero competition.

  8. Thanks for the share. Love these types of blogs that ACTUALLY help developers instead of just wishy-washy content. It helps us know who to reach out to for quotes.

    1. Technological changes, such as the use of iron and steel, and new energy sources such as coal and steam, and the factory system, which led to a division of labor and specialization, which increased efficiency.

  9. Glad to see commercial/industrial keeping strides. People don’t realize that these types of projects keep THOUSANDS of jobs open. goodyear

  10. Glad to see commercial/industrial keeping strides. People don’t realize that these types of projects keep THOUSANDS of jobs open.

  11. Glad to see commercial/industrial keeping strides. People don’t realize that these types of projects keep THOUSANDS of jobs open, definitely.

  12. Welcome to local online marketing directory and thank you for visiting our official website. We only want what’s best for our valued consumers. Because of this, our content is made by the best writers in our team to produce high-quality articles. You can reach us if you have any inquiries that you want to know.

  13. Thanks for the industrial development that are providing a ton of jobs in the states.

You Might Also Like