top of page
  • Writer's pictureNorm Khoury SIOR, CCIM

Takeaways from the Colliers’ L&T Solutions Group Session on the Economy & Industrial Real Estate


Earlier this month KC Conway of Red Shoe Economics presented to Colliers’ Logistics & Transportation Solutions (L&T) Group at our meeting in Dallas. He shared his insights on the current economy and what the future may hold for industrial real estate. I had the pleasure of attending this session.


Below are the highlights:


It’s not ALL doom & gloom:

  • Demand for industrial is expected to rise over the next two years

  • Current demand continues to outpace inventory due to the continued strength of e-commerce combined with the rise in on-shoring/near-shoring

  • Oversupply risk is low, despite a robust development pipeline for 2023

  • Construction costs may go down because of a slowdown in residential construction and decreased Amazon building activity. Amazon has reportedly scrapped plans for up to 42 new buildings

What 2023 might hold:

  • The Federal Reserve is signaling to banks to stop lending by raising rates; rates may continue to rise

  • Labor availability may continue to be an issue

  • Access to water might be a key driver for site selection, especially in states which are dependent on the Colorado River. This will likely impact facilities with high water demand, such as chip manufacturing

  • The U.S. supply chain may transition to a North-South network, as East and Gulf Coast ports see an increase in activity coupled with existing rail connectivity

51 views0 comments
bottom of page