EV Popularity Driving Industrial Demand
The rush to make electric vehicles (EVs) is driving companies to occupy industrial real estate, according to an article on GlobeSt.com.
"The demand comes not just from EV manufacturers themselves, but also from the multiple suppliers of parts and components involved in assembling the cars and the batteries that propel them,” writes Philippa Maester, citing CommercialEdge’s National Industrial Report.
Even though EV sales slowed in the second half of 2023 and some automakers like Ford and GM have pulled back on their previous EV production goals, CommercialEdge believes the future of the sector remains positive, she wrote.
“EV and battery manufacturing will also require extensive supplier networks occupying millions of square feet of industrial space. The interactions between materials and parts providers with the manufacturers will also require additional logistics space,” the report said. “Our industrial property market outlook predicts that the production of EVs, their batteries and the suppliers’ networks will drive industrial demand for the foreseeable future.”