We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » CBRE: Warehouse construction rates continue boom in first quarter
newsworthy

CBRE: Warehouse construction rates continue boom in first quarter

June 20, 2019
DC Velocity Staff
No Comments

Warehouse construction rates in the U.S. continued their record boom in the first quarter of 2019, extending a trend of tight vacancy rates and rising rents as e-commerce retailers search for sites located close to consumers, a report said today.

E-commerce volumes are driving so much demand for new DCs that slightly more than 70 percent of warehouse space now under construction is being built on speculation, meaning that developers started construction before securing occupants for their buildings, according to the report from commercial real estate giant CBRE.

Figure 1: U.S. Warehouse Space Under Construction
Enlarge

While that strategy may sound risky, the national vacancy rate for warehouses is a thin 4.4 percent as demand has dramatically exceeded new supply in recent years, pushing rents up by 19.2 percent since 2015, Los Angeles-based CBRE said.

According to the report, "Demand Continues to Outpace New Warehouse Construction," the top five markets for spec warehouse construction that offer below-average vacancy rates and strong rent growth are: California's Inland Empire, Los Angeles, Seattle, Las Vegas, and New York/Northern New Jersey.

In all, in-progress warehouse construction in the U.S. totaled 255 million square feet at the end of this year's first quarter. That running tally entered record territory in 2015 and has steadily climbed since then as companies raced to expand their e-commerce distribution networks for close proximity to as many customers as possible, the firm said.

?"E-commerce continues to expand into additional sectors like grocery and furniture, creating demand for distribution space that supports additional construction," Chris Zubel, a senior managing director leading CBRE's representation of Industrial & Logistics investors in the Americas, said in a release. "Conditions will vary by market, but e-commerce demand has created a fundamental shift in the warehouse sector."?

Material Handling Supply Chain Services Facility Systems & Maintenance Business Management & Finance
KEYWORDS CBRE
  • Related Articles

    CBRE: New warehouse construction caught up to hot demand in fourth quarter

    LTL and truckload rates to continue growth spurt in fourth quarter, index says

    CBRE report says industrial property demand slowed in first quarter

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

  • Shipping groups back bipartisan trucking overhaul bill

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing