U.S., Canada mid-year ports update: Markets showing tempered demand on lower volume
Most port-proximate industrial real estate markets are registering tempered demand totals due to lower port volumes coupled with softening economic conditions, according to Cushman & Wakefield in its mid-year ports update.
Key port markets, such as Los Angeles and New Jersey, posted net losses through the first half of the year amid a slowdown in deal activity coupled with some large occupiers right sizing their footprints and placing large blocks of logistics space onto the market for sublease. Tempering demand has been the notable annual decline in loaded inbound containers, as both key gateways have yielded year-over-year decreases of more than 20 percent.
Still, some port markets have seen healthy absorption totals through the first half of 2023. Savannah’s (Ga,) 6.6 million square feet overall net absorption year-to-date (YTD) ranked fifth highest in the nation and represented 5.8 percent of its current inventory, the highest of any market. Meanwhile, Housto