Retailers Lease Warehouse Space At Record Pace
Retailers are leasing warehouse space at a record-setting clip, as e-commerce drives companies to locate closer to population centers and keep more products on hand to meet customers’ speedy delivery expectations. Firms leased 70.1 million square feet of industrial space in the second quarter of 2016, the most in over 30 years of data and up 6% from the same quarter last year, real-estate brokerage Cushman & Wakefield Inc. said in a report Monday. In a separate report, brokerage CBRE Inc. said warehouse availability declined for a 25th consecutive quarter to 8.8%. Retailers have been renting warehouses faster than developers can build them, as they race to build infrastructure to fulfill surging online orders. The latest trend of opening smaller distribution centers near cities to improve delivery times and accept returns is driving vacancy rates into the low single digits in some areas. Read more at The Wall Street Journal.
