As most of us would have already felt, inflation is an ongoing concern globally. As rounds of economic stimulus circulated more money in the markets, demand for goods and services also increased. The ongoing Russia-Ukraine war also resulted in increase in oil prices due to the fact that Russia is a major producer of crude oil. Increase in crude oil prices affects almost every segment of the market as crude oil is essential for transportation whether by air, sea or land.
With inflation as a concern in the US as well as countries around the world, many countries are now on a mission to curb inflation by increasing interest rates. As interest rates increase, costs of borrowing go up which in turn affects cost of holding any types of properties whether industrial, commercial or residential. With an increase in costs of holding, naturally landlords would be pressured to increase rents resulting in an increase in industrial space rental rates. Apart from industrial properties, this is also true for residential properties as well as any other types of properties.
Also, with all these factors adding up in recent times, it is no real surprise why industrial space rental rates have been on an upward trend.