April 6, 2016
Dwindling warehouse and distribution center space is becoming more the rule than the exception, in and around the top 12 regional markets in the United States. The national vacancy industrial product was 6.4% at the end of 2015, the lowest in 15 years. Space expected to get a lot tighter as demand outpaces supply.
Tier One markets – including Southern California’s Inland Empire, Chicago, Dallas, Atlanta, New Jersey and eastern Pennsylvania – are feeling the pinch. The reasons include an increase in e-commerce, growing consumer demand for rapid delivery, and a lack of new supply.
“Physical construction has only cranked back up in the last 24 months,” said Blaine Kelley, senior vice president of the global supply chain practice for CBRE.