Hines Research Reveals How Proximity and Policy Shifts Are Reshaping Global Industrial Demand
Hines, a leading global real estate investment manager, has released a new research report titled “The Global Industrial Sector (R)evolution.” The study shows how changing trade patterns, defense spending, e-commerce growth, and policy shifts are transforming the industrial real estate sector into a high-growth, innovation-driven market.
David Steinbach, Global CIO at Hines, stated that globalization’s standard approach is ending. Today, power availability, proximity to markets, and local policy alignment are becoming key factors for investment and development.
Four Major Forces Driving the Sector Forward
1. Global Trade Realignment
Geopolitical tensions, tariffs, and fiscal incentives are creating new regional trade corridors across the U.S., Europe, and Asia. This shift is driving demand for localized manufacturing and logistics networks.
2. Convergence of Property Types
Industrial spaces are evolving into multi-dimensional assets. Warehouses now blend with:
- Retail spaces
- Manufacturing units
- Data infrastructure
Examples include grocery stores turning into micro-fulfillment centers and warehouses converting into data centers.
3. Regional Opportunity Dynamics
- U.S.: Re-shoring and government policies may cause a 35% rise in warehouse demand in the next five years.
- Europe: Defense spending and industrial investments are initiating a new growth cycle.
- Asia: Strong regional trade and rapid e-commerce expansion show long-term value potential.
4. Power as a Competitive Edge
Energy access and grid capacity are now major considerations in investment decisions. Areas with strong energy infrastructure are commanding premium values, especially for data centers and advanced manufacturing.
Expert Insight
Josh Scoville, Head of Global Research at Hines, said:
“The next wave of growth is being driven by real structural change – not temporary cycles. Trade, technology, and tenant needs are shaping the future of industrial real estate.”
About Hines
Hines manages $91.8 billion in assets across 30 countries and operates with a 68-year legacy of innovation in real estate development and management.
