Flexe Institute Market Watch: September Supply Chain and Macroeconomic Data

August 24, 2023

Get the latest in supply chain and macroeconomic data impacting shippers.

Market Watch Collage April 2023

The latest in warehousing key metrics provides a high-level look at the industry.

Key Takeaways

  • 8.4% Cost of Capital Rate
  • 3.5% Unemployment Rate
  • 4.9% Industrial Vacancy Rate
  • $11.65 Warehousing Rate Per Square Foot Rate

Macroeconomic indicators today #

Macro indicators

Cost of capital and the federal funds rate increases drive costs. But static unemployment and improving consumer sentiment indicate economic improvement.

Sources for 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 changes #

Supply chain Yo Y

Spot rates for ocean-to-road freight decreased while parcel rates increased. The PMI index decreased again.

The warehousing industry today #

Warehousing industry

Sources for section: Investing.com; FedEx; Drewry World Container Index; Port Authority NY NJ, Port of Long; Beach, Port of Los Angeles; DAT Freight & Analytics

Industrial Real Estate Vacancy Rate #

Vacancy rates increased but remain below pre-Covid levels. Lease rates increased. As a result, the market isn’t suited for fixed CapEx initiatives.

Industrial Logistics Real Estate Vacancy and Market Rent Rates

Industrial Real Estate Net Absorption #

Over the last 12 months, warehousing space in Texas and Pennsylvania was in higher demand, increasing lease rates.

Industrial Real Estate Net Absorption 1

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.

Industrial Logistics Real Estate Construction Pipeline

Sources for section: CoStar Database; CoStar Database; Bureau of Labor Statistics Database; CoStar Database; CoStar Database