After two years of dominance by Inland Empire, Calif., Miami took the top spot for the highest industrial rent growth with an 11.9% year-over-year increase.
Many in the cold storage space are using automated storage and retrieval systems to more strategically manage their inventories. The systems can stretch 150 feet in height or approximately 12 stories high.
Even though a spate of new construction in 2023 brought a record 413 million SF of industrial space to market, it is expected that abundant supply will be short-lived. The most active occupiers of the space were general retailers and wholesalers, which accounted for 36% of all lease transactions.
Those in industrial CRE are keeping up with foreign exchange issues and the current strength of the dollar, which can be as important as monitoring interest rates. Understanding manufacturing and the global flow of goods means having a grasp of how the relative dominance of a given currency can affect who can afford to make products based on their location.
Prologis acknowledges that while operating conditions are healthy in the majority of their markets, customers are remaining focused on controlling costs, which is weighing on decision making and the pace of leasing. High interest rates and mounting geopolitical concerns are also factors that are contributing to this hesitancy but the effect of this indecision on net absorption is expected to be short-term.