We find great value in a monthly email that we receive from one of our logistics partners that updates us on all sectors of the logistics industry. The main focus of our reading is on the warehouse and distribution portion of the email. This information is very interesting and valuable for all in the material handling and distribution industry. We have to share some important nuggets below.
The U.S. average industrial vacancy rate fell for the 19th consecutive quarter to 7.2% in Q4 of 2014. This is the lowest level in nearly 14 years. Overall vacancy was 9.7% in Atlanta and 9.2% in the South during the fourth quarter of 2014.(Source: NGKF)
In Q4 2014, warehouse and distribution rental rates in the US averaged $5.64 per square foot, up from $5.66 Warehouse Rent Rates per square foot in the previous quarter. Rental rates for warehouse space averaged $4.10 per square foot in Atlanta.(Source: NGKF)
Net absorption in the US during Q1 2015 totaled more than 10.6 million square feet, down 5% from the same quarter one year ago. Despite the deceleration, net absorption has been positive now for 20 consecutive quarters (Source: Cassidy Turley) (Absorption is the net change in occupied space between two points in time. Positive absorption means that previously unoccupied space is being occupied.)
The National PMI (Purchasing Managers Index) fell 1.4 points to 51.5 in March 2015. New orders fell 0.7 points to 51.8 and production increased 0.1 points to 53.8. (Source: Institute for Supply Management) (The PMI combines data on new orders, inventory, production, supplier deliveries, and employment. A reading above 50 indicates that the manufacturing economy is generally expanding.)
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About AK Material Handling Systems
We deliver value to our customers by providing the absolute best combination of quality products, helpful customer service and competitive pricing. We specialize in warehouse layout & design, pallet rack systems, engineered sales, mezzanines, modular offices and completed turn-key warehouse systems. For more information email us or call (800) 722-5908
Let’s Talk
Ready to get started? Or have questions about any of our products or services? Fill out the form and a representative will contact you promptly.
About AK Material Handling Systems
We deliver value to our customers by providing the absolute best combination of quality products, helpful customer service and competitive pricing. We specialize in warehouse layout & design, pallet rack systems, engineered sales, mezzanines, modular offices and completed turn-key warehouse systems. For more information email us or call (800) 722-5908