18 DC VELOCITY AUGUST 2018 www.dcvelocity.com
newsworthy
Industrial property “availability”
rate hits lowest point since 2000,
CBRE says
The “availability” rate for U.S. industrial real estate declined last
quarter to its lowest point since 2000 as demand for warehouses,
distribution centers, and other industrial property continued to
outpace supply, according to a report published by real estate services giant CBRE.
The availability index, which is the sum of the quantity of vacant
space plus space currently occupied by a tenant whose lease is
expiring and being marketed for use by another occupant, fell to
7. 2 percent in the quarter. This is the measure’s 32nd consecutive
quarterly decline, the longest drop since CBRE began tracking the
measure 30 years ago, it said.
The company considers industrial availability figures to be
the most accurate and inclusive depiction of the U.S. market.
Many reports instead
use vacancy rates as the
“headline number” to
illustrate market conditions. Availability and
vacancy rates can differ by as much as 200
basis points, CBRE said.
Vacancy rates nationwide are hovering around 5 percent, though they could be as low as
2 to 3 percent in high-demand markets like the Los Angeles basin.
In the second quarter, 39 U.S. markets posted declines in
industrial availability from the first quarter, 21 markets reported
increases, and four remained unchanged, according to CBRE data.
The largest declines were registered in New Haven, Conn.; Tucson,
Ariz.; Sacramento, Calif.; and Jacksonville, Fla. The biggest increases were in Pittsburgh; Louisville, Ky.; and Allentown, Pa.
CBRE expects the pattern of declines to flatten out over time
because the amount by which demand exceeded supply narrowed
to 22 million square feet in the 12 months ended in June from 65
million square feet during the prior period.
Overall, warehouse and distribution center demand is solid and
balanced, spurred by continued strength in e-commerce fulfillment and a relatively broad economic rebound, CBRE said. “Net
absorption” across the 55 markets tracked by CBRE amounted to
59 million square feet in the quarter. Net absorption is calculated by taking the occupied square footage at the end of a period,
subtracting the occupied amount at the start of that period, and
factoring in levels of vacated and newly constructed space.
The company added, however, that adverse developments concerning trade policy could affect the industrial segment. Prologis, a
big industrial developer, made similar comments in a report issued
in mid-July. But Prologis emphasized that logistics real estate is
influenced more by U.S. economic conditions and supply-demand
factors than by trade relations.
Capstone Logistics, a provider of out-sourced supply chain solutions to DCs in
the grocery, foodservice, retail, and other
industries, has acquired Logistical Labs, the
developer of LoadDex, an SaaS platform for
collecting, analyzing, and acting on supply
chain data. … Toyota Advanced Logistics
North America (TALNA) has acquired Peach
State Integrated Technologies, a strategic
supply chain consulting, engineering, and
material handling integration firm headquartered in Atlanta. Toyota made the
acquisition through Bastian Solutions, the
systems integration firm that is an operating subsidiary of TALNA. … Dematic,
a supplier of supply chain technology,
software, and services, has received UL
(Underwriters Laboratories) certification to
the UL 3100 Standard for its Dematic AGVs
(automated guided vehicles). Underwriters
Laboratories performs safety testing and
certification on a variety of products, facilities, processes, and systems worldwide.
… Material handling systems integrator
Vargo has expanded its footprint in central Ohio, leasing office space in Dublin
to house its growing software engineering team. … Contract logistics specialist
DHL Supply Chain shipped more than 110
million tires in the U.S. and Canada in
2017. … The Material Handling Equipment
Distributors Association has partnered
with the Manufacturing Skills Standards
Council and Amatrol, a provider of technical e-learning systems, to develop an
industrywide Certified Forklift Technician
program. … Crown Equipment Corp. has
opened a new regional forklift service
training center in Toledo, Ohio. … Logistics
service provider Dachser has announced
plans to add 26 less-than-containerload
(LCL) connections in 2018, increasing the
frequency of departures for six of its existing services to every week from every two
weeks. … Bright Light Partners, the holding
company for RoadOne IntermodaLogistics,
has expanded its intermodal drayage and
logistics operations with the acquisition
of First Coast and Mile High Logistics of
Jacksonville, Fla.
short takes
