• Disruptions to global supply chains have suppliers scrambling to increase their inventories and increase their warehouse space, creating opportunities for industrial & logistics property owners and investors.
  • Strong demand for industrial space is forecast for markets near large population concentrations, as well as seaports, inland ports and major air hubs.
  • Product sourcing will expand beyond long-dominant countries like mainland China, as suppliers implement a multi-location strategy to mitigate risk and to increase inventories in the face of continued supply chain disruptions.
  • Industrial demand will shift to different ports of entry as countries of supply-chain origin change. In the U.S., shifts in product sourcing to South Asia and Europe will benefit East and Gulf Coast ports, especially Charleston, Savannah and Houston. In Europe, the Greek port of Piraeus and the Spanish ports of Algeciras, Barcelona and Valencia are expected to attract more container volume. Alternative port choices in Asia-Pacific include Xiamen, Qingdao, Nansha and Shekou in mainland China and Tanjung Pelepas in Malaysia.
  • Further nearshoring or reshoring of manufacturing, particularly to Northern Mexico, will help relieve supply disruptions.