Federal Budget For ‘Made In America’ Manufacturing Could Mean Even More Industrial Demand
The White House is trying to pour accelerant on the already blazing fire known as the U.S. industrial real estate sector.
June 1, 2021 | Kerri Panchuk, Bisnow Dallas-Fort Worth
In its proposed fiscal year 2022 U.S. federal budget, the White House allocated $600B in funds to support the creation of U.S.-based manufacturing jobs. The administration intends to support the initiative by establishing stronger product sourcing requirements to compel companies to build and source their materials in the U.S.
The plan includes funding for the Made in America office, created by executive order in January, which will work with other federal agencies to ensure allocated funds are spent in the U.S. While it’s unknown how much more demand this provision will create for industrial space, commercial real estate experts say any focus on reshoring manufacturing has the potential to further heighten industrial space demand.
U.S. net absorption in the industrial sector hit the second-highest level ever on record at 85.6M SF in JLL’s Q1 2021 industrial outlook report. The report showed the national industrial vacancy rate back down to 5.2% at the end of Q1, after 121.5M SF was leased during the quarter.
