The Chief Economist: Industrial Insights

In this edition of The Chief Economist, BGO’s Ryan Severino delivers a sector-specific analysis of the U.S. industrial real estate market. Despite mixed economic signals, consumer and corporate spending remain resilient, fueling demand for industrial properties. Corporate equipment investments expanded in July, wages and salaries outpaced inflation, and consumer spending stayed strong across categories, including food and beverages. These trends support steady industrial demand, particularly in storage and cold storage facilities.

BGO also notes that uncertainty persists around trade policy, with a recent appeals court ruling tariffs unlawful but delaying changes pending possible Supreme Court review. Still, the industrial sector is benefiting from the AI boom and the resurgence in domestic manufacturing, which are driving demand for facilities of all types, including light manufacturing. BGO highlights that, even amid economic headwinds and shifting trade policy, industrial real estate demand remains resilient.

Read the full article here: Industrial Insights