Industrial Sector Starting to Soften
Risk Being Assessed Differently & Slobalization
Adam Roth, executive vice president, Industrial Services, NAI Hiffman, tells GlobeSt.com that as supply chains catch up, “we somewhat suddenly find ourselves re-entering more traditional trade flow patterns.
“Corporations’ mid-pandemic reaction was ordering additional product for just-in-case stockpiles to prevent lost sales that occurred earlier in the outbreak. I would expect some correction in ‘footprint’ as better reliability and pricing returns to the transportation sector and retailers burn through their inventory.
“However, in our recent experience there are long-term supply chain shifts occurring. Risk is being assessed differently. Selective decoupling from China will continue to pick up pace.”
He said the age of cost-driven, blind globalization is being replaced by ‘slowbalization’ and a movement towards bilateral trading blocs with like-minded nations as well as production locally – supply chain to be replaced by supply web and international regionalization.
“While we will experience near-term lower transportation pricing as another bullwhip effect coming out of the pandemic, in the long run, corporations will be forced to combat their length of haul and reduce their time to market,” Roth said.
“Real estate is an ideal solution for this. I remain bullish on the industrial real estate sector for North America, particularly in areas that offer access to power, population and transportation infrastructure.”
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.