Warehouses

Nationwide Demand for Warehouse and Distribution Space at 18-Year High The third-quarter industrial availability rate — which measures properties that are vacant or about to be — stood at 7.1 percent, according to a new CBRE tally, the Wall Street Journal reported. That marks 33 straight quarters of falling vacancy rates. The last time the vacancy rate was lower was at the start of the new century, when it reached 6.6 percent.

Potential of Multistory Warehouses In the U.S., CBRE said there are at least five multistory warehouses underway or in the planning stages in New York City, Seattle, and San Francisco, which, if successful, could serve as a pacesetter for future developments in other cities with similar conditions.

Automation and Personnel in Warehouse Real Estate Automated warehouses manned at least partially by robots are likely to become mainstream in the future, as warehouse tenants look for ways to overcome a growing labor shortage. Each 1 percent of savings in transportation and labor costs equates to 15 to 20 percent in logistics real estate rent.

Warehouses Are on Fire (in a Good Way) The retail sector’s need for space is not shrinking—it is transforming. It is going from showrooms and consumer hospitality, to warehouse storage and distribution. Manufacturing combined with the latest fast track economic expansion has ignited demand for warehouses and storage buildings. An interesting trend is the need for high-end, sophisticated warehouses and storage space in comparison to basic “big-box” facilities. The new pool of buyers, investors, lessors and renters want computerized, robotic capability. They want state-of-the-art automation, monitors, tracking and security systems.

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