Flexe Institute Market Watch: September Supply Chain and Macroeconomic Data

Macroeconomic indicators today

Cost of capital and the federal funds rate increases drive costs. But static unemployment and improving consumer sentiment indicate economic improvement.

Sources for section: New York University, Damodaran Online; Bureau of Labor Statistics Database; Federal Reserve Economic Data Database; University of Michigan Survey of Consumers

Supply chain YoY changes

Spot rates for ocean-to-road freight decreased while parcel rates increased. The PMI index decreased again.

The warehousing industry today

Sources for section: Investing.com; FedEx; Drewry World Container Index; Port Authority NY NJ, Port of Long; Beach, Port of Los Angeles; DAT Freight & Analytics

Industrial Real Estate Vacancy Rate

Vacancy rates increased but remain below pre-Covid levels. Lease rates increased. As a result, the market isn’t suited for fixed CapEx initiatives.

Industrial Real Estate Net Absorption

Over the last 12 months, warehousing space in Texas and Pennsylvania was in higher demand, increasing lease rates.

Industrial Real Estate Construction Pipeline

After seven quarters of growth in the national construction pipeline, constructed square feet decreased. When coupled with increasing vacancy, future lease rates will decrease.

Sources for section: CoStar Database; CoStar Database; Bureau of Labor Statistics Database; CoStar Database; CoStar Database