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 #
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 #
Spot rates for ocean-to-road freight decreased while parcel rates increased. The PMI index decreased again.
The warehousing industry today #
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 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 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.
Sources for section: CoStar Database; CoStar Database; Bureau of Labor Statistics Database; CoStar Database; CoStar Database
