After a pandemic-driven surge, and a subsequent pullback, warehouse real
estate supply and demand is finally starting to come into balance and
showing new signs of life.
E-commerce, which was the primary driver of the recent boom cycle, certainly hasn’t gone away, but more people are returning to brick and mortar. Warehouse tenants are now more focused on efficiency, power and location than they are on square footage.
New development has slowed down, and federal policies are pushing onshoring of manufacturing, which helps the sector counter still-high interest rates and economic uncertainty. Rent increases are no longer as steep as they were a few years ago, and in some markets they are actually falling slightly due to oversupply.
Key Points
- Warehouse real estate supply and demand is starting to come into balance after a tumultuous few years.
- New
development has slowed down, and federal policies are pushing onshoring
of manufacturing, which helps the sector counter still-high interest
rates and economic uncertainty.
- In some markets, rents are falling slightly due to oversupply.
...more
RSK: After a quarter of over supply, the warehouse sector is slowly making a comeback with demand increasing and supply just starting to gain some momentum.
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- - Volume: 25 - WEEK: 49 Date: 12/2/2025 3:32:25 PM -