The latest in warehousing key metrics provides a high-level look at the industry.
Key Takeaways
- 3.7% unemployment rate
- 8.4% cost of capital rate
- 4.6% vacancy rate
- $11.55 annual market rent per square foot
Increasing cost of capital and federal funds rate drive business costs. The increasing unemployment rate and declining consumer sentiment suggest a possible recession.
Ocean-to-road spot rates decreased. Parcel rates increased. The PMI shows decreased manufacturing activity, another recessionary indicator.
Industrial Real Estate Vacancy Rate #
Lease rates are increasing, so the market is not ideal for long-term, fixed CapEx initiatives.
Industrial Real Estate Net Absorption #
Texas, Illinois and Pennsylvania 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
