Nearshoring: A Strategic Shift in the Industrial Real Estate Market
Summary: The industrial real estate market has witnessed a strategic shift in recent years with the emergence of nearshoring. This practice involves relocating production facilities closer to a company’s home country or target markets, offering benefits such as reduced transportation costs and improved supply chain control. While demand for new housing and office spaces has decreased, the industrial and logistics sector remains resilient despite economic challenges like the Covid-19 pandemic, inflation, and geopolitical tensions.
According to consulting firm CBRE, Slovakia’s vacancy rate for logistics and industrial properties was 2.72 percent in the second quarter of 2023. The lowest vacancy rate was observed in the western region at 0.69 percent, while the eastern region reported the highest rate at 9.48 percent.
The industrial real estate sector in Slovakia has experienced robust growth, as both gross and net demand indicators have increased by over 60 percent, as noted by Patrik Janščo from Cushman & Wakefield.
This shift towards nearshoring in the industrial real estate market reflects a change in the approach of companies towards their manufacturing operations. As businesses adapt to evolving global dynamics, the demand for industrial properties is expected to evolve, leading to new investment opportunities and economic developments in different regions.
The source of the article is from the blog procarsrl.com.ar