The State of the National Industrial Real Estate Market

WASHINGTON, D.C. — According to frequent CapRate speaker and contributor Kevin McGowan, President of McGowan Corporate Real Estate Advisors, the national industrial market continues to suggest very strong momentum on the consumer side, with many opportunities at our fingertips. “The national availability rate is unchanged, despite increased supply,” says McGowan. “What you’re seeing is – in any of these markets – you’re seeing construction and continued tenant demand, and tenant demand is supported by a number of positive drivers.” According to McGowan, the consensus is that the industrial market will remain relatively balanced, even with a flush construction pipeline. “Really the question is, why is that?” he asks. “Industrial real estate market data suggests that international trade – obviously, a recent increase in imports – is likely to lead to greater warehouse demand. There have been reported an increase in factory orders and shipments, showing positive signs that warehouses will remain full in the coming months. The ISM purchasing managers’ index indicated its best average in the first quarter since 2012.” McGowan admits that geopolitics have been tumultuous though. “You’ve got Brexit, Trump, Syria, North Korea, and while the specific events don’t impact warehousing, the major themes of immigration, job automation and depressed wages have an impact on the consumer,” says McGowan. “But the consumer has remained strong. And love him or hate him, Trump remains clear on the fact that he wants to buy American and hire American. This…