It’s tough to view a strong economy as bad news. Yet a firmly positive economic projection in ULI’s Real Estate Economic Forecast does not bode well for commercial real estate participants who are hoping for relief in rate cuts from the U.S. Federal Reserve.

Once overlooked as little more than open-air spaces for trailer parking, industrial outdoor storage (IOS) sites are emerging as a promising niche for their increasingly significant role in the e-commerce and logistics sectors and their potential to earn strong returns for investors.

Demand for industrial space has pushed vacancies to historically low levels. But the high tide may no longer be lifting all boats. A surge in new supply along with a growing appetite for more modern facilities is putting more pressure on the sector’s aging building stock. Legacy buildings are having a tougher time keeping up with the changing demands of today’s space users.

A confluence of economic and geopolitical trends is changing global supply chains and driving increased demand for industrial and logistics real estate in Southeast Asia, according to industry leaders at ULI Asia Pacific’s REImagine conference.

The COVID-19 pandemic made 2021 a historic year for the shipping and logistics industry, as rising e-commerce sent large retailers and general merchandisers scrambling for warehouse space to hold their inventory, supply-chain issues delayed shipments, real estate developers strained to keep up with demand, and local governments struggled to issue permits quickly with employees working from home.

ULI MEMBER–ONLY CONTENT: The dramatic increase in online shopping in the United States has only further increased the appetite for properties close to population centers.

Global growth in e-commerce spurred by the coronavirus pandemic is boosting investor interest in a “new economy” asset class dominated by data centers and logistics facilities, speakers said in early September at a session during the ULI Asia Pacific REImagine conference.

A recent ULI Europe webinar looked at the “new normal” for urban logistics including the possibilities of drone delivery and how a downturn and changes in regulation could free up more locations in central business districts.

The Punggol Digital District, set to launch in 2023, will form a fresh nexus between higher education and industrial innovation, with its two anchor institutions being the Singapore Institute of Technology and a new business park developed by JTC Corporation, an industrial property developer and manager.

Developers are under more pressure than ever to include features in their buildings that are good for the environment, good for their workers, and good for the surrounding community, said experts speaking at the ULI Fall Meeting.