WAREHOUSE AVAILABILITY REACHED LOWEST POINT SINCE 2000 LAST YEAR
The availability of industrial space fell to 7% in the fourth quarter, the lowest point since 2000, and real-estate brokerage CBRE Group Inc. said the tight capacity that has driven up the costs of warehousing in recent years will remain a challenge for companies well into this year.
The U.S. market for distribution centers and other storage sites has become increasingly competitive in recent years as the growth of eCommerce has boosted demand for warehouse space, especially for large sites located near major population centers.
Distributors and logistics providers are snapping up new facilities as quickly as they come online. Demand exceeded supply by roughly 6 million square feet in the fourth quarter, or by 29 million square feet for the full year, according to CBRE, and the gap between demand and supply grew wider in the second half of the year.