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Supply Chain Graphic of the Week: US Warehouse Lease Rates Still Headed Higher


Far from Slowing Down, Rates are Actually Accelerating, CBRE Report Says


April 25, 2019


It's been a long, long winning streak for distribution space owners - and the good times keep rolling on.


The Q1 2019 flash report from real estate firm CBRE shows lease rates for US industrial space - primarily warehouses - were up another 8% on average in the quarter, as shown in the graphic below:



After the great recession, rates turned positive in Q1 2012 and have never looked back. In fact, even though other indicators say demand for DC space is slowing a bit, rates are actually accelerating, with the year-over-year growth in rates of just under 8% that highest in more than a decade.


The party has to end sometime, but for now it remains a strong sellar's market.


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