It’s been very difficult for companies to get their hands on warehouse space in recent years. There simply hasn’t been enough warehouse space to go around thanks to the e-commerce boom. However, according to a new report, the red-hot warehouse market could cool off just a bit over the course of the next three years. It seems as though the warehouse supply has finally started to catch up to the demand, which should make it easier for companies to find warehouse space when they need it.
The report, which was released by the Deloitte Center for Financial Services, reveals that warehouse space is expected to increase by about 850 million square feet in between 2019 and 2023. That would leave companies with almost 15 billion square feet of warehouse space to divide among themselves. The report also suggests that warehouse availability should rise to more than 10 percent by the time 2023 rolls around, which will represent an increase of more than 3 percent compared to the warehouse availability in 2018.
While this report is great news for those companies that have been having a tough time finding warehouse space over the last few years, there are some things that could affect the forecast provided in the report. For example, the forecast from Deloitte Center for Financial Services assumes that economic growth will slow down by 2020 and that interest rates will rise while that’s happening. If that’s not what actually takes place, it could have an impact on how much warehouse space is actually available at the start of the 2020s.
If your company can wait a few years to invest in warehouse space, it might be worth it to do it. But if you need a warehouse now, Affiliated Warehouse Companies can help you find what you’re looking for. Call us at 732-739-2323 today to hear about the warehouse options we have in the U.S., Mexico, and Canada.