According to a March 2023 Industrial Space Demand Forecast Report funded by the NAIOP Research Foundation, the outlook for industrial real estate remains bright as supply chains steadily improve, despite rising interest rates and growth in supply of new space entering the market. Low vacancy rates will continue to support growth in rents and property values.
Additionally, there is greater focus on generative artificial intelligence (AI) and its ability to uncover new avenues of demand for space.
In this article, we’ll delve into the dynamic world of industrial construction and explore the powerful role Artificial Intelligence (AI) is playing in shaping the future of this landscape.
Key Trends Shaping Industrial Real Estate Today
- E-commerce Evolution: The rise of e-commerce has led to a skyrocketing demand for modern, efficient distribution centers. This surge in demand has led to the construction of large, state-of-the-art fulfillment centers and warehouses, strategically located for speedy deliveries to meet the expectations of online shoppers.
- Sustainability Matters: The industrial construction sector is increasingly focusing on sustainability. From eco-friendly building materials to energy-efficient designs, sustainability is becoming a non-negotiable element of industrial projects.
- Urbanization and Last-Mile Delivery: Urban spaces are becoming valuable real estate, necessitating the development of industrial properties closer to urban centers for efficient last-mile delivery. These strategically located properties are in high demand.
- Technology Integration: With the advent of AI and automation, industrial spaces need to adapt. AI is not just about robots; it’s about optimizing processes, enhancing security, and increasing efficiency in every aspect of industrial operations.
- Flexible and Modular Design: Flexibility is key as businesses aim to adapt to changing needs. Industrial spaces that can be easily reconfigured or expanded upon are highly sought after.
- Data-Driven Decision Making: AI is transforming the way industrial spaces are designed and operated. Data analytics enable better decision-making regarding layout, workflow, and energy management.
- Uncovering NEW Avenues for Space – Data Centers: There is greater focus on generative artificial intelligence (AI) and its ability to uncover new avenues of demand for space. McKinsey & Company estimates that the U.S. Data Center demand is forecast to grow by some 10% a year until 2030! According to CBRE, “the rapid growth of artificial intelligence – along with other modern technologies such as streaming, gaming and self-driving cars – is expected to drive continued strong Data Center demand. This will spur innovations in data center design and technology as operators aim to deliver the capacity that meets the increased power density requirements of high-performance computing.”
At Oliver Construction, we’re dedicated to building commercial building spaces that align with these changing trends, creating spaces that facilitate innovation, efficiency, and growth. Let’s build success together – experience the OCI difference by connecting with us on your next industrial construction project.