Supply Chain Snags Feed into Industrial Property Bonanza

Summary

Congested Supply Chains and Shift to E-commerce Creates an Industrial Frenzy

Once the pandemic hit, the ongoing shift to e-commerce accelerated, encouraging businesses to further build out virtual platforms and bolster distribution channels. Over the past year, strong consumer demand amid severe bottlenecks in the global supply chain has quickly depleted inventories, and businesses are now rushing to restock their shelves and re-shore more of their supply chain. This confluence of factors has lead to soaring demand for industrial space, drawing in a wide array of developers, logistics companies and investor capital.

  • Supply chain bottlenecks are most apparent at the nation’s largest ports, which have been placed under tremendous strain by the rush of imports amid widespread worker shortages and the implementation of new safety precautions.
  • The Port of Los Angeles and the Port of Long Beach, which together comprise the San Pedro Port Complex and account for 30% of the containers shipped in the United States, have become one of the major bottlenecks in the global supply chain. An average of 76 ships have been waiting to berth in November, more than at any other time in the complex’s history.

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