Empty warehouses are becoming even more rare.
Real-estate brokerage CBRE Inc. reports that the availability rate for industrial property – which means warehouses and distribution centers – fell to 9.4% nationwide in the fourth quarter of 2015. This news follows a 23 consecutive quarters trend of falling availability. This almost 6 year run is the longest stretch of falling vacancies since CBRE started tracking it in 1989.
The limited availability is a result of growth in demand as the economy recovers, along with a halt in new facilities being built.
Locally, Chicago warehouse vacancy rates stayed fairly steady at 7.3%, over two percent lower than the national average. While 7.3% is a very slight increase on the quarter below (.03%) it is still drastically lower than the post-crash peak of 12.2% in early 2010, with no reason to believe it will begin to climb significantly.
As expected with a shortage of space, rents continue to rise causing 3PL rates to also rise, making it tricky to build inventory. If you are looking for available Chicago warehousing space, please contact Nexus today.