Residential real estate is on a wild tear, with home prices higher than ever and inventory at historic lows. The same can be said for the warehousing and industrial real estate market, where supply can’t keep up with demand, according to a new report from Prologis.
The report highlights include:
Rising construction costs: Steel prices in the United States tripled in the past year, and general contractor prices have increased as well. The time between breaking ground and completion has expanded by two to three months, or 20 percent, over the past decade, adding to costs
Bigger buildings needed without sufficient land: Ecommerce requires three times the logistics space, as compared with brick-and-mortar retail, due to deeper inventory levels, space-intensive shipping operations and returns processing. So warehouses are getting bigger, but finding suitable land is