U.S. Warehouse Market Getting Closer to Balance
By Erica E. Phillips | April 10, 2018 5:05 p.m. ET
The gap between warehouse demand and supply appears to be narrowing.
The availability of industrial real estate across the U.S. declined slightly in the first quarter, according to real-estate brokerage firm CBRE Group Inc., the latest signal that a market driven by fast-growing demand for e-commerce fulfillment is getting close to balance.
The availability rate—which includes properties that are vacant or will soon be vacant—fell less than one-tenth of a percentage point over each quarter in the past year and a half, reaching 7.3% in U.S. markets during the first quarter of 2018, according to CBRE. By contrast, from late 2012 to late 2016, availability fell much more steeply, dropping more than two-tenths of a percentage point on average every quarter.
CBRE said warehouse developers have been putting up buildings at a faster pace, and are coming closer to meeting overall demand. In the first quarter of 2018, CBRE reported net demand of 41 million square feet, which was 6 million square feet beyond the 35 million square feet of new completions…
Comments are closed