In June 2020, Colliers Real Estate Management Services released a series of reports based on tenant surveys exploring office, retail and industrial recovery in the context of regulations, cost increases and adaption. We conducted a follow-up survey in November and our recent findings and analysis have formed a new series of reports.
These reports provide an in-depth understanding of how tenants are coping with the economic impacts of COVID-19. They also offer a forward-looking view as to how tenants see the next 12 months based on what they know today. The third report in this series, Industrial Recovery: Inventory, Demand and Space Needs, examines how industrial assets have performed throughout the pandemic, COVID-19’s impact on vacancy rates, and the best-performing tenants.
- Industrial tenants’ operating costs have increased by an average of 20%.
- The cost of raw materials has increased by 12%.
- Product demand has decreased by an average of 45% compared to the same time last year but is highly dependent on the industry.
- 70% of industrial tenants would like to keep the same space they currently lease.
- 6% of industrial tenants, of which 4% are small businesses, are planning to permanently close.