Logistics
Forwarding | Warehousing and Distribution
US warehouse leasing rates slip in Q1 2024
WarehouseQuote National Warehouse Pricing Index , a measure of average US warehousing storage costs
Index level
114
112 100 110
108
107 106
L Apr, 2022 Jul Oct Jan 2023 Apr Jul Oct Jan 2024
Source : WarehouseQuote
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“ Don ’ t discount the effect of the port labor issue that was resolved ,” Prologis CEO Hamid R . Moghadam said during the earnings call .
“ That took a lot longer than most people thought and that affects a lot of the users immediately adjacent to the port [ complex ],” he said . “ So that market can get tight real quick if that port volume comes back .”
Prologis has tried to determine whether more clients are moving further inland to locations such as Las Vegas and Phoenix .
“ That market can get tight real quick if that port volume comes back .”
“ While absorption has increased in those markets , it doesn ’ t fully account for the drop off in Southern California ,” Moghadam said , adding that some of the higher vacancy rates are a byproduct of “ deferred demand .”
“[ Los Angeles – Long Beach ] coming back , that part accounts for over 30 % of imports in the US ... that ’ s going to have a dramatic effect ,” he said .
email : bill . cassidy @ spglobal . com
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www . joc . com May 6 , 2024 | Journal of Commerce 33