Inflation In The Industrial Sector: SVN NOW

admin  /   April 28, 2022

Inflation In The Industrial Sector: SVN NOW

Inflation In The Industrial Sector

SVN Now: Your Update on CRE Trends and News

In this market update, Curt Arthur of SVN | Commercial Advisors, LLC in Salem, Oregon illustrates how the current inflation rates could impact the industrial sector across the United States.

Click here to view this week’s topic: Inflation in the Industrial Sector


Read on for the video transcript!

Speaker 1

Hello, my name is Kurt Arthur, and I’m proud to serve as the industrial product council chair here at SBN. And in this industrial market update, what we really want to focus on is the impacts that the current inflation rates are having, we’re going to have across the United States in the industrial market sector, it’s no surprise that Amazon has recently announced that they are going to slow the growth of their logistics centers starting this year and next year, because partially of the impacts that we’re seeing from inflation.

Inflation currently is exceeding wage growth. That’s troublesome, certainly, but when you combine that with the fact that we’re seeing gas prices, travel prices across the board at historic highs, those two things together are eroding the purchasing power that we all have throughout the United States. We think that those impacts are going to hit the market as early as the fourth quarter of this year, potentially early part of next year.

As of right now, demand continues to to exceed supply. So we don’t necessarily see a big shutdown anytime in the near term future. But how long this inflationary period lasts will dictate the impact on the overall industrial market.

Have a great day. Bye

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