Industrial markets have gone through a dramatic transformational shift. Due to Covid, Americans are shifting their habits of decision-making and consumption. This has forced suppliers of goods and services to find new ways best to meet the demands of the newly shaped spending patterns. Experts believe the shift by consumers to E-commerce has accelerated five years ahead of projections. American consumers truly understand the power they have at the click of a button within their homes. A true shift from face-to-face transactions leads to companies having to have large stockpiles of shipment-ready inventory on hand.

The lack of inventory has led to runs of certain products, such as toilet paper and paper towels, while supply chain issues have led to outages of products like Gatorade and Capri-Sun. These pandemic issues have shown significant weaknesses in the country’s supply chain. It is causing companies to view the need for last-mile supplies, which is tied directly to the need for more industrial space located closer to consumers’ homes.

E-commerce firms such as Amazon, traditional retailers such as Target, and third-party logistics providers such as CEVA are ramping up their businesses to meet the growing demand. All this growth is causing Industrial development to go into overdrive, with a massive boom in new construction and absorption. It is also causing rental rates to increase 15 to 20% year-over-year as tenants look to find space for their growing businesses and inventories.
This market comparison looks at the top ten largest markets throughout the United States in square foot inventory.