--- title: Looking Ahead description: There’s good news and bad news in the current market outlook. It all depends on which way you turn. image: https://blog.sior.com/hubfs/Looking%20Ahead.jpg --- - [Who We Are](https://www.sior.com/whoweare) - [Chapters](https://www.sior.com/chapter) - [Partners & Supporters](https://www.sior.com/partners) - [SIOR Foundation](https://foundation.sior.com/) - [Contact](https://www.sior.com/contact-us) - [MySIOR](https://my.sior.com/home) - [Search](Javascript:void(0);) - [Find an SIOR](https://sior.com//find-an-sior) - [Become an SIOR](https://sior.com//become-an-sior/become) - [Education & Insights](https://sior.com//education-and-insights) - [Events](https://sior.com//conferences) - [Transactions & Data](https://sior.com//transactions) - [Current Members](https://sior.com//current-members) - [Who We Are](https://www.sior.com/whoweare) - [Chapters](https://www.sior.com/chapter) - [Partners & Supporters](https://www.sior.com/partners) - [SIOR Foundation](https://foundation.sior.com/) - [Contact](https://www.sior.com/contact-us) - [MySIOR](https://my.sior.com/home) - [Search](Javascript:void(0);) - [Find an SIOR](https://sior.com//find-an-sior) - [Become an SIOR](https://sior.com//become-an-sior/become) - [Education & Insights](https://sior.com//education-and-insights) - [Events](https://sior.com//conferences) - [Transactions & Data](https://sior.com//transactions) - [Current Members](https://sior.com//current-members) # SIOR Pulse Blog In This Section ### Education & Insights - [Overview](https://sior.com/education-and-insights) - [Education](https://sior.com/education-and-insights/education) - [Insights](https://sior.com/education-and-insights/insights) - [Latest News](https://sior.com/education-and-insights/insights/latest-news) - [SIOR Report](https://www.sior.com/education-and-insights/insights/magazine/sior-report) - [SIOR Pulse Blog](https://blog.sior.com/) - [Thought Leadership Series](https://sior.com/education-and-insights/insights/thought-leadership-series) - [SIOR Weekly Newsletter](https://sior.com/education-and-insights/insights/sior-weekly) - Writing Opportunities [Return to SIOR Pulse Blog](https://blog.sior.com) Share: [envelope](mailto:?subject=Check%20out%20https://blog.sior.com/looking-ahead%20&body=Check%20out%20https://blog.sior.com/looking-ahead) [twitter](https://twitter.com/intent/tweet?url=https://blog.sior.com/looking-ahead&text=Looking%20Ahead) [facebook](http://www.facebook.com/share.php?u=https://blog.sior.com/looking-ahead) [linkedin](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.sior.com/looking-ahead) John Salustri 12/30/2021 # Looking Ahead ![](https://blog.sior.com/hubfs/Looking%20Ahead.jpg) Categories: [Market Trends & Analysis](https://blog.sior.com/tag/market-trends-analysis) ###### Predicting the Headlines of 2022 Should we start with the good news or the, well, not so good? On the good news side, the industrial market is pretty much where we left it in *[SIOR Report’s](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/summer-2021/recovering-from-covid-19)*[ Q2 market update](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/summer-2021/recovering-from-covid-19). Namely, the national market is so tight that B product is still gaining allure for prospective tenants, even those who a few years ago would have considered only A product for their needs. Further, “CBRE researchers anticipate that another 300 million square feet of industrial space will be absorbed on the back of e-commerce alone,” the article continues. “However, due to the need to research and develop, produce, and store COVID-19 vaccines, the explosive growth of life sciences and cold storage have also thrived in the pandemic and are expected to continue.” Clearly, industrial is a market enjoying robust interest from tenants and investors alike, a far cry from the current situation that exists in the office sector. “Overall U.S. office absorption remained firmly in the red in Q2 2021,” [reports Colliers](https://www.colliers.com/en/research/office-market-outlook-q2-2021), placing it at negative 18.6 million square feet. The report does give a nod, although slight, to a little good news, stating that at least this is “markedly lower than the negative 46.1 million square feet seen in Q1 2021, which was the worst quarterly total on record.” Let’s get back to the good news. “The industrial market remains strong as e-commerce continues to gain more and more share of the sales that would normally go to retail brick-and-mortar stores,” agrees [Sim Doughtie, SIOR](https://www.sior.com/viewprofile?PersonID=41080), president of King Industrial Realty, Inc./CORFAC International in Atlanta. Of course, this is not to say the industrial market is without its own woes, as major, months-long disruptions in the supply chain—also noted in Q2—continue to plague the industry, both in terms of on-time deliveries to e-commerce clients as well as the building delays and price hikes caused by hang-ups in the delivery of construction goods. “If you ordered steel to build an industrial building on Oct. 1, you won’t get the steel to the site until July of 2022,” says Doughtie. One possible solution, in motion as we speak, is more onshoring and nearshoring with a greater reliance on backyard countries such as Mexico. “China has had significant labor increases over the past 10 to 15 years,” says Dallas-based [Conrad Madsen, SIOR](https://www.sior.com/viewprofile?PersonID=66555). “When you factor in the logistics costs, port delays, and challenges with China, Mexico is now on the same playing field for manufacturers.” *Read the full article in the [Winter 2021 issue of SIOR Report](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/looking-ahead) now!* [![Read Full Article](https://no-cache.hubspot.com/cta/default/4930347/c67412bb-fb39-4789-a72c-12bb40c5995c.png)](https://cta-redirect.hubspot.com/cta/redirect/4930347/c67412bb-fb39-4789-a72c-12bb40c5995c) ###### Related Articles: | [![Preserving 1031](https://blog.sior.com/hs-fs/hubfs/Preserving%201031.jpg?width=270&name=Preserving%201031.jpg)](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/preserving-the-1031-now-and-for-the-future) ###### [PRESERVING THE 1031, NOW & FOR THE FUTURE](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/preserving-the-1031-now-and-for-the-future) | [![CREI_Edit](https://blog.sior.com/hs-fs/hubfs/CREI_Edit.jpg?width=270&name=CREI_Edit.jpg)](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/summer-2021/staying-closer-to-home) ###### [Q3 2021 CREI](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/industrial-continues-to-shine-but-office-falters-in-2021-q3) | [![Timeless Tips](https://blog.sior.com/hs-fs/hubfs/Timeless%20Tips.jpg?width=270&name=Timeless%20Tips.jpg)](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/timeless-tips-for-any-economic-climate) ###### [TIMELESS TIPS FOR ANY ECONOMIC CLIMATE](https://www.sior.com/education-and-insights/insights/magazine/sior-report-article/winter-2021/timeless-tips-for-any-economic-climate) | | --- | --- | --- |   ![John Salustri](https://blog.sior.com/hubfs/SAlustri_John%20Headshot.jpg) ### [John Salustri](https://blog.sior.com/author/john-salustri) has covered the commercial real estate industry for nearly 25 years. He was one of the founding editors of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors. He has a quarterly column in the SIOR Professional Report magazine called All Things Considered. Contact [John Salustri](mailto:jsal.scs@gmail.com). [mailto:](mailto:) ### YOU MAY ALSO LIKE ### [Increasing Power Demands and Stakeholder Response Are Changing the Data Center Map](https://blog.sior.com/the-changing-data-center-map) [Read](https://blog.sior.com/the-changing-data-center-map) ### [Beyond the Deal: How AI Is Reshaping Tenant Research and Experience](https://blog.sior.com/beyond-the-deal) [Read](https://blog.sior.com/beyond-the-deal) ### [Return to Office 2.0](https://blog.sior.com/return-to-office-2.0) [Read](https://blog.sior.com/return-to-office-2.0) ![subscribe weekly](https://blog.sior.com/hubfs/SIOR_September2019/images/subscribe-mobile-new.38f24a48.png) ## SUBSCRIBE TO SIOR WEEKLY! **Personalized. 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