Technology, Cannabis & Industrial Real Estate Market in 2020 While assessments for 2020 vary, we agree with the experts on these two trends that will affect the industrial real estate market this year: 1. Sustainable, but slower growth is expected for the U.S. economy and the commercial real estate business, with tariffs, recession fears and a flattening yield curve among the issues posing potential causes of a downturn later in the year. 2. Technology continues to change the commercial real estate business in wide-ranging and consequential ways -- including expediting information exchange and the potential for deals to close faster.
While assessments for 2020 vary, we agree with the experts on these two trends that will affect the industrial real estate market this year:
However, some things are pretty safe to say. Technology is having an impact on all property types, most obviously in retail and industrial assets. E-commerce has just begun the “death of retail stores” while fueling an expansion and unparalleled demand for industrial product. Artificial intelligence could replace millions of jobs as it transforms the nature of work faster than we think. If canabis is legalized on the upcoming election ballot in New Jersey, our industrial market may be in for a “second expansion boom” also impacting how industrial product is developed and fitted-out for this very specialized use. We’ll see just how much lower vacancy rates can go while rents and sales prices continue to move higher. - SB