Liz Young of The Wall Street Journal tells her readers that average leasing rates across the U.S. have flattened out, with deals to be had. She writes:
Taylor Wood says bargaining with warehouse owners for storage space is far different than during the pandemic, when demand for industrial space was red hot.
“I’ve never seen a market like that, where we were basically scratching and clawing for every building,” said Wood, a broker at real estate services firm Savills. “There were five offers on every building.”
Now, Wood sees signs rents are flattening nationwide and even ticking down in some logistics-heavy markets like Southern California that were effectively sold out for years. Warehouse owners remain wary about publicizing lower rents, but there are more deals to be had and concessions being offered, he said. […]
New capacity coming online, much of it planned when demand was still strong, is helping push prices down. Approximately 115 million square feet of newly constructed space became available in the first quarter, far above the 10-year average of 42 million square feet completed per quarter from 2010 through 2019, according to Cushman.
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