According to Bisnow, the White House allocated $600B in funds to support the creation of U.S.-based manufacturing jobs. The Biden 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 heighten demand for industrial space.

CBRE Vice Chairman and Managing Director of Capital Markets Jack Fraker said, “Federal spending to spur manufacturing job growth will be an additional boost to the industrial real estate market. Made in America, new manufacturing jobs, domestic sourcing of raw materials and all the supply chain ramifications will likely mean more buildings, both factories and distribution. Most speculative industrial properties can easily be adapted to both manufacturing and certainly distribution.”

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