U.S. Warehouse Supply at Its Tightest in Two Decades
By Erica E. Phillips | July 11, 2018 10:30 a.m. ET
For U.S. retailers, manufacturers, importers and exporters, warehouse space is at its tightest since 2000, when the first dot-com boom was driving strong consumer spending and imports from China were beginning to surge.
Economists with real-estate brokerage CBRE Group Inc. CBRE -0.66% say in a report released Wednesday that new warehouse space is getting gobbled up as soon as it’s completed. In the second quarter, demand for industrial space went beyond the 49 million square feet that came online, but supply and demand are edging closer to equilibrium..
As consumers increasingly do their shopping on the internet—even buying big, bulky items like furniture off the internet—the availability of warehouse space to store those goods and fulfill orders continues to decline across the U.S. In the second quarter, industrial real estate availability fell to 7.2%, the lowest measure since 2000, CBRE economists said.
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