Robust Economy Drives E-Commerce; Rising Shipping
And Delivery Costs Influence Supply-Chain Strategies
• Industrial deal flow grew at a greater rate than other property types on a year-over-year basis in the second quarter, while also bringing sales
volume in the same quarter to a new high of $18.2 billion.
• E-commerce sales climbed 15.2 percent in the second quarter from a year earlier to now account for 9.6 percent of total retail sales.
• U.S. firms spent a record $1.5 trillion on shipping expenses in 2017 as increased demand has pushed transportation costs higher. Companies are strategically combating the increased cost of delivering products by taking up more space in dense residential areas, bridging the gap between large distribution centers on the outskirts of major metros.
• The national industrial vacancy rate was 4.9 percent in the second quarter, the lowest reading on record, to support a 5.8 percent year-over-year increase to the average asking rent, which climbed to $6.78 per square foot.
• In the first half of 2018, developers completed just over 112 million square feet of industrial space, with at least another 145 million square feet on tap for the remainder of the year. For 2018 supply growth surpasses the 255 million square feet delivered in 2017 by roughly 5 million square feet, recording a new high for the cycle.