More than half of American CEOs (55%) whose companies rely on manufacturing to produce and deliver their products recently reported plans to reshore some operations, according to a survey by Xometry, Zogby and Forbes. Of those, 95% said they would do so in 2023. Interest in bringing manufacturing closer to home has been growing, driving demand for industrial space and creating new opportunities for commercial real estate brokers.
Experts in the commercial real estate industry are predicting that the demand for older, existing facilities will increase as the economy continues to recover. According to John Steinbauer, president of Steinbauer Associates in Miami, older facilities are being occupied rapidly, with prices doubling over the past five years.
The reason for this increased demand is due to a variety of factors. First, businesses are looking to expand their operations and are willing to consider existing facilities rather than building new ones. Second, there is a shortage of skilled workers, which is driving companies to look for locations that already have an available workforce. Third, businesses are being attracted to cities with established infrastructure, such as highways and airports, which older facilities often have.
These trends are expected to continue for the foreseeable future, with experts predicting that the demand for older facilities will remain strong in the coming years. As a result, investors who are willing to take on the challenge of renovating and updating these facilities may be well-positioned to capitalize on this trend.
See the Experts’ Take on the Topics including John Steinbauers at the following link. https://lnkd.in/eX6564Pd
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