Flexe Institute Market Watch: The Warehousing Industry at a Glance

Rising capital costs and federal fund rate increases business costs. Despite decreasing unemployment, the commercial outlook is uncertain.

The PMI index shows decreased manufacturing activity. Ocean-to-road freight spot rates decreased, as did volume. Parcel rates increased.

Industrial Real Estate Vacancy Rate

Lease rates increased with vacancy rates— an atypical pattern. Leading companies now avoid long-term fixed Capex initiatives.

Industrial Real Estate Net Absorption

Texas, California and Georgia warehousing demand and rates increased, driving secondary market popularity.

Industrial Real Estate Construction Pipeline

Q1 marked the end of seven growth quarters in the national construction pipeline. Past construction and increasing vacancy will decrease future lease rates.

Sources:

Macroeconomic indicators 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 Section

Investing.com

Statista

Port Authority NY/NJ

Port of Long Beach

Port of Los Angeles

DAT Freight & Analytics

Warehousing industry section

CoStar Database

Bureau of Labor Statistics Database

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