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Home » U.S. Warehouse Supply at Its Tightest in Two Decades

U.S. Warehouse Supply at Its Tightest in Two Decades

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.

July 12, 2018
The Wall Street Journal

Economists with real-estate brokerage CBRE Group Inc. 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 percent, the lowest measure since 2000, CBRE economists said.

The industrial availability rate — which includes properties that are vacant or will soon be vacant — has now fallen for a record 32 consecutive quarters, according to CBRE, the longest stretch of declines since the firm began tracking the data in 1988.

Overall the market is “remarkably balanced,” said Tim Savage, senior managing economist for CBRE. He said industrial developers have been able to respond quickly to most of the demand in many markets because the structures are relatively simple to build: “Just four walls and a roof.”

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Logistics Facility Location Planning All Warehouse Services Order Fulfillment Warehouse Management Systems E-Commerce/Omni-Channel Industrial Manufacturing Retail
KEYWORDS All Warehouse Services E-Commerce/Omni-Channel Facility Location & Network Design Industrial Manufacturing Logistics order fulfillment Retail Warehouse Management Systems
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