Demand for industrial space is stronger than ever across the United States, as e-commerce and third-party logistics businesses keep expanding their operations, despite the late-stage business cycle and increasing trade tensions, reported Yardi Matrix.
With e-commerce sales volume doubling over the past five years, retail companies are competing for urban warehouses in the race for fast delivery. Distribution centers, warehouses, manufacturing facilities and other light industrial buildings continue to generate strong momentum, particularly in markets with improved infrastructure, sustained employment growth, and proximity to major ports and air cargo centers.
Nearly 315 million square feet was under construction nationally at mid-year, an increase of roughly 7 percent compared to fourth quarter 2018, reflecting tenants’ insatiable appetite for space and developers’ confidence that the new space will be rapidly absorbed. According to Yardi Matrix data, a combined 19.3 million square feet was under construction in three major industrial markets: Houston, Philadelphia and Phoenix.
To read the full report, click here.
