American manufacturing ranks among the many (many) aspects of everyday life impacted by the COVID-19 pandemic. With the announcement of lockdown orders in 2020 came lower demand for countless products and materials. In response, manufacturing operations sold off product, lessened their output and, in some instances, opted to close shop altogether. Of course, the industrial space has always put forth a “can-do” attitude. And, as the nation continues to emerge from the global pandemic, the industrial real estate sector appears poised to offer tremendous opportunities for companies and investors alike. Here are a few things you should know.
Texas Will Remain a Hot Spot for Industrial Growth
The Lone Star State has long been known for its business-friendly climate, something that makes it a prime place for coming industrial growth. Tesla’s incoming Gigafactory in Austin aims to reach completion by the year’s end, for instance, while more than 90 companies have recently announced plans to relocate their corporate headquarters or manufacturing operations to the Dallas area. Belvoir’s hometown of Houston, with more than 30 startup development organizations (SDOs) already open — or opening soon — is setting the stage for tech development. In other words, it’s an ideal time for those looking to invest in industrial opportunities throughout Texas.
The Shift Toward Reinvented Spaces Will Continue
We’ve talked at length of the growing trend of finding new uses for existing spaces. In an era where many retailers are shifting to an online-only approach, it leaves certain spaces, such as shopping malls and strip centers, experiencing more vacancies than in the past. At the same time, it leaves online-only businesses in need of warehousing space to store and aid in the distribution of their products. Companies everywhere have already begun transforming such existing spaces to meet new industrial storage and distribution needs, something likely to continue moving forward.
Industrial is Just the Beginning
The influx or growth of industrial operations tends to spur growth within other areas, as well. After all, when such operations move in, it’s rare that each and every employee hired on comes from that specific geographic area. That means new people moving into towns. And those people need places to live. Cars to drive. Grocery stores, restaurants, retail shops and recreation. Put simply, one sector’s success often fuels that of others.
Although no one knows exactly what the future holds for coming development, the fact that American manufacturing seems poised for a major resurgence is pretty exciting. If you have questions about any of the above, or if you’re interested in available industrial real estate opportunities, feel free to contact Belvoir. Our team is always happy to help.