Well, we knew from the volume of articles we’ve found that logistics is in full boom here, but now we’ve found the numbers: logistics is experiencing 12-15% growth that will continue over the next few years.
Most of this growth comes from 3PLs, which stands for “third-party logistics,” a newer trend where the developer builds and owns the building and provides short-term contracts to tenants; say, 3-5 years. This relieves the tenant from the possibility of getting stuck with a building that they eventually may not need due to market changes.
— there was a 9.1% vacancy rate in 2004, expected to spike this year.
— of 10 million s.f. in logistics space opening this year, only 20% of it is pre-leased.
What we can expect, then–in addition to more and larger warehouse proposals–is that more of the developers will want to build on spec and as we see new buildings we will also see more vacancies and turnovers.