Recent PWC comment on Real EstateKey trends driving industrial demand include onshoring of manufacturing activities and the need for space for last-mile delivery, fulfillment, and flexible office uses. Some industrial tenants are holding more inventory on site to manage supply chain issues, which is further bolstering demand for space. But PwC Canada’s recent Canadian Consumer Insights survey shows stabilizing e-commerce activity as pandemic restrictions subside, and some interviewees questioned whether demand for industrial space will soften, especially if predictions of an economic downturn materialize. Others wondered whether momentum for this asset class will continue given concerns about potential overheating in the industrial market amid large increases in net effective rents and valuations in the past year. Overall, industrial property remains a best bet for many interviewees, and some real estate companies with strong balance sheets are looking to see whether a pause in the deals market will create opportunities for them to enter or expand their presence in this asset class. Other important trends in this asset class include construction of stacked or multistory industrial buildings. While still rare, they offer opportunities to navigate a market where land is scarce and can support sustainability goals by helping combat urban sprawl.