Flexe Institute Market Watch: The Warehousing Industry at a Glance

May 25, 2023

Get the latest in supply chain and macroeconomic data impacting shippers.

Market Watch Collage September 22

The latest in warehousing key metrics provides a high-level look at the industry in May.

Key Takeaways

  • 3.5% unemployment rate
  • 8.4% cost of capital rate
  • 4.5% vacancy rate
  • $11.44 annual market rent per square foot

Rising capital costs and federal fund rate increases business costs. Despite decreasing unemployment, the commercial outlook is uncertain.

Supply chain

The PMI index shows decreased manufacturing activity. Ocean-to-road freight spot rates decreased, as did volume. Parcel rates increased.


Industrial Real Estate Vacancy Rate #

Lease rates increased with vacancy rates— an atypical pattern. Leading companies now avoid long-term fixed Capex initiatives.

Industrial Logistics Real Estate Vacancy and Market Rent Rates

Industrial Real Estate Net Absorption #

Texas, California and Georgia warehousing demand and rates increased, driving secondary market popularity.

Industrial Logistics Real Estate Net Absorption

Industrial Real Estate Construction Pipeline #

Q1 marked the end of seven growth quarters in the national construction pipeline. Past construction and increasing vacancy will decrease future lease rates.

Industrial Logistics Real Estate Construction Pipeline

Sources: #

Macroeconomic indicators section

New York University, Damodaran Online

Bureau of Labor Statistics Database

Federal Reserve Economic Data Database

University of Michigan Survey of Consumers

Supply chain YoY Section



Port Authority NY/NJ

Port of Long Beach

Port of Los Angeles

DAT Freight & Analytics

Warehousing industry section

CoStar Database

Bureau of Labor Statistics Database