Not Just E-Commerce: How Manufacturing Will Drive The Industrial Property Boom

E-commerce has dominated the headlines as the driver of an industrial property boom and bounteous rent growth. According to Los Angeles-based CBRE, the average industrial lease rate of $7.01 per square foot in the first quarter was not only the highest rate achieved since the brokerage began tracking the metric in 1989, but it also represented a year-over-year increase of 5.9%, which was well above the 12-month average of growth rate of 3.8% going back to the fourth quarter of 2011.

But in no way is e-commerce the only force generating the good times. Traditional warehouse users and third-party logistics companies have also been active in the market, and now manufacturers could be poised to contribute a bigger share to that growth, too.

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