CBRE: E-commerce driving warehouse construction in US
E-commerce demand is driving warehouse construction across the US, according to a new report from CBRE. At the end of the first quarter of 2019, warehouse construction in the US totaled 255 million sq ft. Just over 70 percent of warehouse space now under construction is being built on speculation. The national vacancy rate for warehousing is at 4.4 percent as demand has dramatically exceeded new supply in recent years, pushing rents up by 19.2 percent since 2015, writes CBRE. The report identifies New York/northern New Jersey, California’s Inland Empire, Los Angeles, Seattle and Las Vegas as the five top markets for spec warehouse construction. These areas offer below average vacancy rates and strong rental growth.