Late last week, CBRE, a real estate brokerage firm, released a summary of their upcoming Q4 2015 US Industrial MarketView report. It was all good news for our economy, but bad news for companies who need warehouse space. The demand for industrial space has grown continuously for the last seven years and, despite the addition of 148.7 million sq. ft. in new construction, availability still declined. This quarter marked the lowest availability rate since 2001 – 9.4 percent.
Lower gas prices have contributed to a rise in consumer demand which, in turn, drives the industrial supply chain. Warehouses across the country are filling up, leaving some markets hurting for warehouse space. Chicago is down to 6.5 percent availability and Los Angeles is at 4.6 percent. In the fourth quarter, 64.1 million square feet became occupied which brought the year’s total of newly occupied space to 239.7 million sq. ft. This squeeze leaves little room for growth and expansion for businesses.
However, the surge in demand for warehouse space creates an opportunity to engage a 3PL. There are many benefits of utilizing a third-party logistics provider, particularly their flexibility and customized solutions. At Saddle Creek, we plan for the future and are growing to meet your needs. We have existing building in most major markets and are excited to grow with you. Visit the links below to learn about our 2.2 million sq. ft. of expansion in Central Florida, Dallas/Fort Worth, and Chicago.
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