What is Driving Growth in the Industrial Sector?

The industrial sector is experiencing tremendous growth in 2016. This has many experts asking, “why?” Numerous elements impact the industrial market. Here, we will examine the primary factors driving the current growth in this sector.

Supply and Demand

This is basic economics. The demand for industrial space is higher than the available supply. Vacancy rates are extremely low and industrial spaces are difficult to find. As one would expect, this is also driving prices up.

Data Centers

Technology and connectivity are crucial to today’s businesses. Many companies need large data centers to house data storage and connectivity equipment. Industrial spaces are ideal for these data centers.

E commerce

The growth of e-commerce pushes companies to focus on their Internet business. This creates a need to store and ship products, rather than maintain large retail spaces.This has created a significant need for more industrial spaces. Companies are seeking warehouses to support their e-commerce.

Flex R and D

A number of companies are looking to combine office and industrial spaces. These specialized accommodations are very much in demand and extremely difficult to find. Developers have yet to catch up to this trend.

The industrial sector is expected to see continued growth in coming years. Economic shifts and advances in technology proceed to push businesses toward industrial spaces.