Global industrial real estate is undergoing a fundamental transformation, shifting from a stable, income-focused asset class into a high-growth, innovation-driven sector, according to new research released by Hines.
In its latest paper, “The Global Industrial Sector (R)evolution,” Hines Research highlights how geopolitical realignment, policy shifts, technological convergence, and rising demand for proximity and power are redefining industrial property markets worldwide. The report argues that these structural forces are reshaping supply chains, investment strategies, and long-term value creation across the sector.
Hines’ analysis points to a renewed emphasis on defense spending, re-shoring of manufacturing, and redrawn regional trade corridors as key drivers of demand. At the same time, the rapid growth of e-commerce and data infrastructure is blurring traditional boundaries between logistics, retail, manufacturing, and digital assets.
“Globalization’s one-size-fits-all era is over,” said David Steinbach, Global Chief Investment Officer at Hines. “Geopolitics is reshaping supply chains, and value now belongs to investors who understand how proximity, power, and policy align locally.”
The research identifies four major forces behind the sector’s evolution. First, geopolitical tensions, tariffs, and fiscal incentives are accelerating intra-regional trade across the United States, Europe, and Asia, increasing demand for localized manufacturing and distribution hubs. Second, industrial assets are converging with other property types, with warehouses increasingly serving as micro-fulfillment centers, advanced manufacturing facilities, or even data centers.
Regional dynamics also play a decisive role. In the United States, re-shoring trends and federal incentives are projected to drive a 35 percent increase in warehouse demand over the next five years. Europe is experiencing renewed growth driven by higher defense spending and domestic industrial investment, while Asia’s strong intra-regional trade and expanding e-commerce markets are expected to support long-term rental and value growth.
Power availability has emerged as a critical competitive advantage, according to the report. Grid capacity and access to energy are now central to site selection and pricing, particularly as industrial assets increasingly support energy-intensive uses such as data centers and advanced manufacturing.
“The industrial sector has been the quiet engine of transformation over the past decade,” said Josh Scoville, Head of Global Research at Hines. “The next wave of growth is being powered by real structural change, not cyclical momentum. We are seeing new corridors of opportunity form where trade, technology, and tenant needs intersect.”
