Industrial & Logistics

Logistics Demand Backdrop

Firm commentary. Charts use cited public series only.

Industrial and logistics real estate demand is linked to goods production, inventory strategies, and the pipeline of private nonresidential construction.

Industrial production and construction spending series from public sources provide a national backdrop. Local vacancy and rent still require market-level diligence.

Owners evaluating dispositions or capital events should pair these macro series with asset-level fundamentals.

Industrial Production: Total Index

103.95

As of 2026-09-01
Index 2017=100

Source: FRED / Board of Governors. Series INDPRO. Unit: Index 2017=100. Observation as of 2026-09-01. Data fetched 2026-10-30 (America/Phoenix).

Private Nonresidential Construction Spending

$773.0B

As of 2026-08-01
Millions of USD, SAAR

Source: FRED / U.S. Census Bureau (Construction Spending C30 via FRED). Series PNRESCONS. Unit: Millions of USD, SAAR. Observation as of 2026-08-01. Data fetched 2026-10-30 (America/Phoenix).

Editorial voice of HB William & Co. No personal bylines. Not investment advice.

Key Takeaways

What to Take Away

Goods movement drives demand

Production, consumption, and supply chain strategy shape the space tenants need.

Building specifications matter

Clear height, power, and truck access separate functional buildings from obsolete ones.

Location is rent

Proximity to population, labor, and ports continues to influence tenant decisions.

Perspective

What It Means for You

Owners

Highlight building functionality and lease structure; both support pricing and tenant demand.

SpecsLease term

Investors

Match strategy to the building - last-mile, regional distribution, or flex - and underwrite rollover carefully.

RolloverRent growth

Occupiers

Balance rent, labor access, and transportation costs when evaluating sites.

Total costLabor

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