Latest: Industrial real estate tenants are trading up from older buildings to new construction

Companies that lease industrial real estate are showing a strong preference for newly constructed buildings instead of older properties, underscoring a sustained “flight-to-quality” trend among occupiers across the market, a Cushman & Wakefield report says. The findings highlight an ongoing preference among tenants for modern distribution facilities featuring higher clear heights, efficient dock configurations, and enhanced operational functionality. “Broadly, flight to quality, particularly toward newer space, remains the dominant trend in the market,” said Pat Murphy, Cushman & Wakefield Managing Director. “Many tenants are looking to upgrade from older buildings into facilities that offer greater efficiency, improved functionality, and better support for modern supply chain operations.” The commercial real estate firm defines industrial properties as those used for manufacturing, warehouse & distribution, industrial, office service, and high technology. In that group, newer industr