The latest in warehousing key metrics provides a high-level look at the industry.
Key Takeaways
- 3.6% unemployment rate
- 8.4% cost of capital rate
- 4.8% vacancy rate
- $11.61 annual market rent per square foot
Cost of capital and the federal funds rate increases drive costs. Decreasing unemployment and improving consumer sentiment show economic improvement.
Spot rates for ocean-to-road freight decreased while parcel rates increased. The PMI index shows decreased manufacturing activity.
Industrial Real Estate Vacancy Rate #
Vacancy rates increased but remain below pre-Covid levels. Lease rates increased again—the market is not currently ideal for fixed CapeEx initiatives.
Industrial Real Estate Net Absorption #
Over the last 12 months, warehousing space in Texas, Pennsylvania and Ohio was in higher demand, increasing lease rates.
Industrial Real Estate Construction Pipeline #
After seven quarters of growth in the national construction pipeline, constructed square feet decreased. When coupled with increasing vacancy, future lease rates will decrease.
Sources: #
Macroeconomic indicators section
New York University, Damodaran Online
Bureau of Labor Statistics Database
Federal Reserve Economic Data Database
University of Michigan Survey of Consumers
Supply chain YoY Section
Investing.com
Statista
Port Authority NY/NJ
Port of Long Beach
Port of Los Angeles
DAT Freight & Analytics
Warehousing industry section
CoStar Database
Bureau of Labor Statistics Database
