“Industrial Lease Trends to Consider in 2022"

Stephanie Friese and Will Janousek article on “Industrial Lease Trends to Consider in 2022"

In an article published on March 18, 2022, Atlanta Co-Managing Shareholder Stephanie Friese and Law Clerk Will Janousek provide insight on the evolution and transformation of the industrial real estate sector.

“E-commerce’s continued growth, an emphasis on relieving supply chain impact and institutional investment driving a new wave of growth are trends that have emerged,” they write.

They further explain that “the continued growth of e-commerce has had substantial effects on industrial leasing.” Distributors and wholesalers are looking for to adaptive reuse for industrial properties to meet the needs of the growing market.

The article also outlines many factors causing substantial impact on supply chains, for example, delays in off-loading shipping containers, and delivery delays caused by reduced numbers of truckers or stevedores. These difficulties have impacted all aspects of the supply chain. “The supply chain challenges facing the U.S. has hindered efficiency in industrial leasing,” writes Friese and Janousek. “Take lumber, for example, a commodity that had such shortages during the pandemic and weather-related supply chain issues it made companies (not just the commodity itself) grow by 40 percent or more. Increased costs and the inability to procure lumber delayed construction of not only new developments but tenant improvements and other buildouts.”

The article concludes by outlining how institutional investment leads to exponential growth for some, and excessive risk to many. It is important to seek experienced counsel who understand the market and can step up to the plate.

To read the full article, you may click here.