INDUSTRIAL MARKET UNPHASED AMID COVID-19
Industrial product has been the silver lining for the commercial real estate industry during the COVID-19 pandemic. While headwinds were felt in the office and retail spaces, industrial market fundamentals continued to improve. In all probability, New Jersey’s industrial market won't escape this economic downturn unscathed, but it will fair better than other property types during this period and the long-term outlook remains positive. Supply chain disruptions from the virus are anticipated to spur demand as retailers scramble to find additional space to store excess products. Social distancing orders have accelerated the shift toward e-commerce purchases, a trend that will likely stick and be a permeant part of consumer buying habits. This will eventually increase demand for distribution space, particularly cold storage if online grocery shopping persists. In an effort to keep their employees safe, occupiers may fast-track their adoption of robotics within warehouses to minimize close human contact.