Industrial real estate includes properties meant for manufacturing, production, warehousing, and distribution, as well as research and development purposes. It is an essential part of the global supply chains and logistics infrastructure, utilized by sectors such as e-commerce, automotive, pharmaceuticals, and heavy manufacturing. Globally, the progress of international trade and e-commerce leads to the development of industrial real estate.
As of 2024, the value of the global market size for the secondary market is approximately $2.5 trillion, and it is projected to expand at a CAGR of 6.2% from 2024 to 2030. Development in the market is being enhanced by factors proactive to cost-efficient production techniques such as the latest technologies, automation, and even an onshoring of manufacturing businesses. The industry is mainly distributed in North America, Europe, and Asia-Pacific, with China and the USA acting as two demand poles for industrial spaces.
Industrial real estate includes properties meant for manufacturing, production, warehousing, and distribution, as well as research and development purposes. It is an essential part of the global supply chains and logistics infrastructure, utilized by sectors such as e-commerce, automotive, pharmaceuticals, and heavy manufacturing. Globally, the progress of international trade and e-commerce leads to the development of industrial real estate.
As of 2024, the value of the global market size for the secondary market is approximately $2.5 trillion, and it is projected to expand at a CAGR of 6.2% from 2024 to 2030. Development in the market is being enhanced by factors proactive to cost-efficient production techniques such as the latest technologies, automation, and even an onshoring of manufacturing businesses. The industry is mainly distributed in North America, Europe, and Asia-Pacific, with China and the USA acting as two demand poles for industrial spaces.
Commercial property that is constructed and utilized for the purpose of its industrial operations, i.e., manufacturing processes, storage, transportation, and scientific research, is known as industrial real estate. Industrial real estate must be of the sort required for such operations to be run, whereas most commercial real estate is office space-oriented or focuses on retail activities alone.
1. Warehouses & Distribution Centers: Ingress and egress of various products, pivotal for enhancing and managing supply chains.
2. Manufacturing Facilities: Engage in creation, assembly, as well as product wrap-up.
3. Flex Space: A hybrid office-industrial space that frequently shares resources with R&D
4. Cold Storage Facilities: Specific warehouses designed for durables and other temperature-sensitive goods.
5. Data Centers: Structures housing servers for cloud-computing services.
6. Showroom & Industrial Retail: mixed-use spaces designed to allow the trade of goods and services to businesses.
Growing Rents and Diminishing Availability: In response to higher demand, the cost of renting industrial spaces is on the rise across the globe while maintaining an average emptiness of 3.5%.
More International Capital Investments: More global investors are investing in and developing logistic centers and heavy industries worldwide.
Rise in Last Station Facilities for Inventory Storage: As cities become more populous, there has been an upward push for mini-warehouses, which are easily accessible.
Technological Advancements: The application of the Internet of Things (IoT) and Artificial Intelligence (AI) to real estate management systems, thereby increasing the effectiveness of operations.
Growth in E-commerce Boost: More than forty percent of industrial retail space of new construction turned tenancies in 2023 by e-commerce companies.
Robotics Uses in Material Handling: The number of smart warehouses, which are heavily populated with such artificially intelligent systems, is forecasted to increase by 30 percent by the year 2026.
Eco-friendly Industrial Units: Warehouse buildings and their occupants are now using smart energy management systems based on solar panels.
Rehierarchy: Bringing Production Closer Home: Demand for industrial facilities within the country is on the rise as companies become less tolerant of long lead-cycle dependency for manufacturing.
By Structure: Warehouses, Factories, Refrigerated Warehouses, IT Hubs.
By Applications: E-commerce, Automobile & Transport, Pharmacy, Information Technology, Commerce.
By geography: North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.
Prologis, Inc. is the largest warehousing property company on earth, with facilities located in important logistics and industrial zones around the world.
Duke Realty Corporation: Engaged in the construction of warehouses for distribution and logistics purposes.
Segro Plc: Represents one of the main industry players on the European retail warehouse market.
GLP is among the top owners of industrial properties in the Asian and North American regions.
CBRE Group: An international real estate company that specializes in providing industrial real estate solutions, among other services, in the real estate sector.