The warehouse availability rate (including properties that are vacant) has fallen for the 32nd consecutive quarter. The availability for industrial space, which includes space that is either vacant or will become vacant in the near future, is now at its lowest level since this data first starting being tracked in 1988.
As consumers continue to do more and more of their shopping online, storage space to house those goods and fulfill those orders are declining. For American retailers, exporters, and manufactures, warehouse space is at its lowest availability since the year 2000.
Economists with CBRE Group have recently released a report stating that new warehouse space is being taken up almost as immediately as its put on the market. In the second quarter of this year, industrial space demand went above the 49 million square feet that were put on the market from that exact same time. Additionally, industrial real estate availability fell to 7.2% — the lowest measure since 2000, CBRE economists have stated.
According to the senior managing economist for CBRE, Tim Savage, the market is “remarkably balance,” and he has stated that industrial real estate developers are able to keep up with this demand by creating very simplistic industrial space.
What this tangibly means is that a number of new warehouse businesses are springing up across the nation. The problem though is that most of these newer businesses don’t know what they’re doing, and most of them will disappear not long after they’ve been established, leaving their clients in a very unfortunate situation.
Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.