Warehouse construction in the United States has reached 255 million square feet at the end of the first quarter, driven largely by the rise in e-commerce.
The latest report from CBRE ranks the top 10 warehousing markets with Inland Empire, CA at the top with 23.4 million square feet in the ground and a 3.2 vacancy rate. Atlanta follows behind at number two with 16.1 million square feet under construction and a 6.4 percent vacancy rent. Dallas/Fort Worth rank in at number three with 15.2 million square feet being built and a 5.9 percent vacancy rate.
The rest are as follows:
- The PA/78/81 Corridor has 12.1 million square feet and a 6.7 percent vacancy rate
- Houston has 10 million square feet under construction and a 5.8 vacancy rate
- Chicago ranks number six with 7.7 million square feet being built and a 6 percent vacancy rate
- New York/New Jersey has 7 million square feet under construction and a 3.4 percent vacancy rate
- Seattle has 6.1 million square feet being built with a 4.2 percent vacancy rate
- Los Angeles has 5.6 million square feet being constructed with a 1.4 percent vacancy rate
- Las Vegas has 5.5 million square feet being built with a 2.4 vacancy rate.
According to Globe St., the U.S. average vacancy rate is 4.4 percent. Meanwhile, of the 255 million square feet of space that is currently under construction, 70.2 percent of it is on spec.
Demand isn't likely to cool off any time soon, so available warehouse space is expected to be leased out shortly after completion. According to Globe St., e-commerce, food and beverage, wholesaler and 3PL users have dominated the pre-leasing activity and are the best candidates to occupy new warehouse facilities.
