Cooling demand increases warehousing vacancies, with rents inching down
Cooling demand has ended the long run of increasing warehousing costs and nudged the average ...
FREIGHTWAVES reports:
Several data points provided Wednesday by logistics real estate provider Prologis showed warehouse space is likely to remain constrained for some time.
A new metric, “true months of supply (TMS),” which compares current vacancies plus the development pipeline to trailing net absorption, has fallen to 16 months in Prologis’ 30 U.S. markets. Historically, that metric hovers around 36 months during expansionary periods and prior to 2021, it has never dipped below 32 months.
TMS data has an 80% or higher correlation with rent growth. A measure less than 50 months usually accompanies rent growth throughout the market…
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The research released by Prologis is here.
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