Warehouse rents climb as e-commerce drives demand

Dive Short:

  • Demand from customers for industrial real estate proceeds to outpace provide, with U.S. vacancy charges hitting a history minimal of 4.five% in Q2, according to new Cushman & Wakefield investigation.
  • Rental charges are climbing alongside desire all over the U.S. The inquiring rent for industrial house amplified six.eight% YoY, pushed by Class A house around important cities and ports.
  • “We are really not viewing an finish in sight for that rental fee advancement,” stated Carolyn Salzer, Cushman & Wakefield’s head of logistics and industrial investigation for the Americas. “It can be really picked up.”

Dive Perception:

Companies are scrambling to land warehouse and distribution house to maintain stock and satisfy on line orders, main to minimal vacancy charges nationwide. These with a big electronic gross sales presence — Amazon, Walmart, Wayfair and Chewy amongst them — and third-social gathering logistics companies are driving desire, Salzer stated.

Amazon is

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