Between July and September 2018, almost 50 million square feet of warehouse inventory opened up across the nation. That might lead you to believe that there is plenty of warehouse space to go around at the moment. But in reality, that couldn’t be further from the truth. According to a new report, the demand for warehouse space is higher than it’s been in almost two decades right now with more and more companies snatching up warehouse space and making it hard for others to find the space they need.
So, why is warehouse space in such high demand right now? It’s largely due to the unprecedented growth of the e-commerce industry. From big behemoths like Amazon to smaller enterprises, there are e-commerce companies that are setting up shop on the internet and renting out warehouse space to store everything they sell to their customers. This has sent the warehouse availability rate plummeting to 7.1 percent and made it tough for some companies to track down available warehouse space in their cities.
What’s more, those companies that are able to find warehouse space that works for them are paying the price for it. In cities like New York City, Chicago, and Los Angeles, the cost to rent warehouse space has gone up significantly in recent months. In New York City, in particular, the price per square foot for warehouses has risen by more than 80 percent in some parts of the city. Warehouse costs could continue to rise through the remainder of the year, too, as the holiday season inches closer and more companies seek to utilize warehouses to store and ship goods.
Finding open warehouse space in most cities is a tall task these days. But you can do it with assistance from companies like Affiliated Warehouse Companies. We can show you warehouse space in your city and help you get your hands on it. Call us at 732-739-2323 today to start looking around.