No space to store goods in U.S, Prologis says
October 28, 2021: Warehouse space is effectively sold out in the U.S as demand has pushed the vacancy rate to a new low of 3.9 percent. "What is available is increasingly more expensive. Logistics customers must move fast to lock down space," Prologis, a global leader in logistics real estate, said in its update on Industrial Business Indicator (IBI).
Strong retail sales and supply chain challenges are driving urgency in leasing, Prologis said. Net absorption reached a record high of 115 million square feet (MSF) in Q3 and 280 MSF year-to-date — more than double the same period last year.
Prologis owned or had investments in projects expected to total approximately 995 MSF in 19 countries.
Extreme competition for modern products has pushed rent growth to a new record of 7.1 percent quarter-over-quarter. "Even though construction pipelines are at all-time highs, construction delays and record pre-leasing point to persistent shortages of space," the report said.
Even as there is no space to store containers, the ports of Long Beach and Los Angeles have decided to collect surcharges from ocean carriers on import containers that dwell on terminals.
"The ports will charge ocean carriers for each container that falls into one of two categories," an official statement said. "In the case of containers scheduled to move by truck, ocean carriers will be charged for every container dwelling nine days or more. For containers moving by rail, ocean carriers will be charged if the container has dwelled for three days or more."