The latest in warehousing key metrics provides a high-level look at the industry in May.
Key Takeaways
- 3.5% unemployment rate
- 8.4% cost of capital rate
- 4.5% vacancy rate
- $11.44 annual market rent per square foot
Rising capital costs and federal fund rate increases business costs. Despite decreasing unemployment, the commercial outlook is uncertain.
The PMI index shows decreased manufacturing activity. Ocean-to-road freight spot rates decreased, as did volume. Parcel rates increased.
Industrial Real Estate Vacancy Rate #
Lease rates increased with vacancy rates— an atypical pattern. Leading companies now avoid long-term fixed Capex initiatives.
Industrial Real Estate Net Absorption #
Texas, California and Georgia warehousing demand and rates increased, driving secondary market popularity.
Industrial Real Estate Construction Pipeline #
Q1 marked the end of seven growth quarters in the national construction pipeline. Past construction and increasing vacancy will decrease future lease rates.
Sources: #
Macroeconomic indicators 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 Section
Investing.com
Statista
Port Authority NY/NJ
Port of Long Beach
Port of Los Angeles
DAT Freight & Analytics
Warehousing industry section
CoStar Database
Bureau of Labor Statistics Database
