Flexe Institute Market Watch: August Supply Chain and Macroeconomic Data

July 25, 2023

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

Market Watch Collage June2022

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

Key Takeaways

  • 3.6% unemployment rate
  • 8.4% cost of capital rate
  • 4.8% vacancy rate
  • $11.61 annual market rent per square foot
Macro 1

Cost of capital and the federal funds rate increases drive costs. Decreasing unemployment and improving consumer sentiment show economic improvement.

Supply chain 1

Spot rates for ocean-to-road freight decreased while parcel rates increased. The PMI index shows decreased manufacturing activity.

Warehousing 1

Industrial Real Estate Vacancy Rate #

Vacancy rates increased but remain below pre-Covid levels. Lease rates increased again—the market is not currently ideal for fixed CapeEx initiatives.

Industrial Real Estate Vacancy and Market Rent Rates 1

Industrial Real Estate Net Absorption #

Over the last 12 months, warehousing space in Texas, Pennsylvania and Ohio was in higher demand, increasing lease rates.

Industrial Real Estate Net Absorption 1

Industrial Real Estate Construction Pipeline #

After seven quarters of growth in the national construction pipeline, constructed square feet decreased. When coupled with increasing vacancy, future lease rates will decrease.

Industrial Real Estate Construction Pipeline 1 1

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

Investing.com

Statista

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

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