During the supply disruptions of the pandemic, stockpiling became an international obsession and warehouse space was in high demand. That’s reversing now. In the fourth quarter of 2023, the US had 5.2% of warehouse space empty versus 4.7% in 2019.
Construction doesn’t turn on a dime, though. Hundreds of millions of new square footage are still being built on spec and look likely to add deflationary pressures in the commercial real estate sector. See Warehouse Availability Surges to The Highest Level Since the Pandemic:
Industry experts have warned the leasing slowdown raises the potential for a glut of warehouse space in the coming months with hundreds of million square feet of new development in the construction pipeline. Much of that space is being built without tenants lined up, known in the real-estate sector as speculative projects.
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