Higher Materials Costs Don’t Slow Pace of Industrial Construction
By: Paul Bubny
Industrial construction continues at a strong pace across many U.S. markets, despite an unprecedented increase in materials pricing that is straining the development sector, Avison Young said in a new report. The cost increases haven’t been enough to significantly slow the industrial pipeline, currently exceeding 300 million square feet nationally.
Dallas-Fort Worth, the Inland Empire, Chicago, Atlanta and Houston top the list of major markets with the highest volumes of industrial space under construction at during the first quarter. Construction is expected to keep a strong pace into 2021.
“We continue to see new industrial development concentrated around major population hubs, as e-commerce and logistics operations look to tap into consumer online shopping trends,” said Erik Foster, leader of Avison Young’s national industrial capital markets group. “This strong construction activity is also catching the attention of investors who are focused on this top asset class.”
Pictured: 4901 David Strickland Rd. in Fort Worth.