E-Commerce Demand Pushes US Warehouse Construction to Record Levels

Top-10 Markets for Speculative Warehouse Space Under Construction, Q1 2019. Source: CBRE Econometric Advisors, CBRE Research, Q1 2019

SADDLE BROOK, NJ—At the end of the first quarter of this year, warehouse construction in the United States reached an unprecedented 255 million square feet, driven in large part by e-commerce demand, CBRE states in a newly released report.

The brokerage firm ranked the top 10 warehouse markets with the Inland Empire, CA leading the way with 23.4 million square feet in the ground and a 3.2% vacancy rate and 9.4% annual rent growth, followed by Atlanta at 16.1 million square feet under construction, a 6.4% vacancy rate and 7.9% annual rent growth and Dallas /Fort Worth, TX at number three at 15.2 million square feet being built, a 5.9% vacancy rate and 3.1%% annual growth.