Demand for industrial space is sharply increasing in most US urban areas and supply is not keeping up.
“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.”
For example, in the ecommerce hot zone of greater Los Angeles CBRE reports that vacancy rates for warehouse-like space is at an all time low of 1.1 percent. Nearly forty percent of all new space under construction is pre-leased.
Part of the problem with supply meeting demand relates to construction capacity -- including available and appropriate real-estate close in to dense and affluent residential areas. '
A related CBRE report concludes, "The supply chain is where real estate and logistics intersect and companies are rethinking how and where to strategically locate their distribution and fulfillment facilities."
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