- The warehouse sector will achieve a net absorption of 655 million square feet between 2017 and 2019, according to Cushman & Wakefield’s latest North American Industrial Forecast Report. Such activity will be second only to the 833 million square feet seen between 2014 and 2016.
- Cushman & Wakefield’s findings are based on Moody Analytics data that indicate the market is being driven largely by internet retailers’ need for industrial space to carry out their fulfillment operations. In 2013, e-commerce made up less than 5% of North American new industrial leases — now that segment makes up 20% to 22%.
- By the end of 2019, 782 million square feet of warehouse space will hit the market, with developers and owners looking to take advantage of a 9.8% year-over-year annual growth rate in rents. The figure is more than twice the rate of rent increases for office space and marks highest growth increase of any property type.