While supply chain slows, logistics real estate moves fast: Report
29 Oct 2021
Robust e-commerce and retail sales combined with supply chain challenges continue to drive demand for space in the industrial sector, which hit a record 3.9 percent vacancy in the third quarter as rents rose 7.1 percent quarter-over-quarter, according to Prologis.
The supply chain bottlenecks are having an additional impact. The ongoing supply chain crisis slowed the flow of goods and caused a decrease in Prologis’ U.S. Industrial Business Indicator, which tracks customer activity in logistics real estate, from a record 71 in the second quarter to 66 for the third quarter. The IBI in the first quarter was 59. In another sign the supply chain issues were being felt, at least temporarily, the utilization rate for the third quarter stayed in the 84 to 85 percent range, though it remained in line with the long-term average.