July 14, 2016
Retailers are leasing warehouse space in record numbers. Furthermore, the trend of locating smaller distribution centers near cities to improve delivery times and returns is creating single-digit vacancy rates.
Second quarter figures from Cushman & Wakefield Inc. note that 70.1 million square feet of industrial space was leased, the most in over 30 years of data. In a separate report, CBRE Inc. said warehouse availability declined for a 25th consecutive quarter to 8.8%.
“The good economy and the change in distribution logistics has led to an increased demand,” said Jeffrey Havsy, CBRE’s chief economist in the Americas. “Now it’s more about having the right products near the customer, and that means more points of distribution rather than a single point of distribution.”