According to the Industrial Real Estate Outlook, e-commerce will continue to be one of the main drivers of industrial real estate in the United States in the short and long term. In addition to the growth of e-commerce companies, existing large retailers are also continuing to expand into the space, according to Commercial Edge’s Industrial Market Report.
Walmart, in particular, is opening dozens of distribution centers across the U.S. to try to catch up to Amazon’s vast dominance in online shopping.
After a period of stagnation, the U.S. e-commerce sector resumed growth in the second quarter (Q2) of this year, with sales reaching $291.6 billion and a year-on-year (y-o-y) increase of 6.7%, according to a report from the Census Bureau. % increase.
According to a report from Commercial Edge, e-commerce is one of the key drivers for U.S. industrial real estate in the short and long term, and in addition to the growth of these companies, major retailers will also continue to expand into this space. It is said that there is The national industrial land vacancy rate was 6.7% in August, an increase of 30 bps from the previous month, while 369.3 million square feet of industrial land was under construction.
The Commercial Edge report noted that the e-commerce boom experienced during the pandemic waned last year, leading to a slowdown in demand for industrial space.
National industrial in-place rents averaged $8.11 per square foot in August, down 4 cents from July but up 7.2% from a year ago.
The U.S. industrial space vacancy rate was 6.7% in August, up 30 basis points (bps) from the previous month, while a total of 369.3 million square feet of industrial space is under construction across the United States.
Total industrial transactions in August were $36.9 billion, with an average sales price of $132 per square foot.
Vacancy rates in the Bay Area and Orange County fell 40 basis points month-over-month following recent increases, but Dallas-Fort Worth led the nation in sales volume with $2.9 billion in transaction volume in August, the lowest for several months. It overtook the Bay Area for the first time.
New Jersey has surpassed Boston in vacant industrial space for the first time in years, with a vacancy rate of 8.1%, the fourth highest in the nation.
The Census Bureau reported second-quarter e-commerce sales of $291.6 billion. This was a 1.3% increase compared to the first quarter and 6.7% year-over-year growth.
E-commerce’s share of core retail sales (excluding cars, parts, and gasoline) remained stagnant throughout most of 2021-2022.
But it has trended upward for six consecutive quarters, reaching 18.8% in the second quarter, the highest level since the peak of pandemic-related closures.
According to the Bureau of Labor Statistics, the warehousing and storage sector of the labor market is also growing.
A total of 24,900 jobs were added in the sector through August. These are small increases for an industry that employs nearly 2 million workers, but they represent an improvement for an industry that contracted by 8.5% between May 2022 and December 2023, the Commercial Edge report added. Ta.
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