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Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/Warehouse-blog

02/20/2023

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Slowing Warehouse Development May Prolong Space Squeeze, Experts Say

    Slowing Warehouse Development May Prolong Space Squeeze, Experts Say.
    Companies are scaling back their construction ambitions as borrowing rates rise.


    For the last few quarters, companies have halted their lease of additional warehouse space. An Amazon warehouse project in Syosset, New York, shown picture.

    The slowing pace of warehouse construction in the US could prolong the ongoing shortfall in logistics space, according to industry experts. Developers are pulling back on building plans in the face of rising interest rates and declining leasing activity, which could lead to a shortage of industrial real estate. US industrial construction starts dropped 24% in the fourth quarter of 2022 compared to the same period a year earlier. This represents the lowest amount of new space to start construction in a quarter since the beginning of the COVID-19 pandemic.

    Developers began building about 137 million square feet of new warehouse space, and the average time it takes for large industrial projects to complete construction is about 13 months. This means that current decisions on whether to break ground on developments will have an impact next year.

    The deceleration in new construction marks a sharp shift from the fast-paced warehouse expansion during the pandemic. During that time, companies leased record-high amounts of space to respond to a surge in e-commerce orders, which drove vacancy rates to multi-year lows. E-commerce giant Amazon doubled the size of its fulfillment network in 24 months as business surged during the pandemic, but last year began slowing its logistics expansion and said it would sublease some of its warehouses.

    Companies signed leases for 132 million square feet in the fourth quarter of 2022, down 28.2% compared to the third quarter and a drop of 37.2% from the previous year, according to commercial real-estate services firm Cushman & Wakefield.

    The national average vacancy rate ticked up to 3.3% from 3.1% the prior quarter. This was the second consecutive quarter vacancy increased after two years of shrinking availability, though the rate remains far below the 5% average vacancy rate in 2020.