US WAREHOUSES are running out of space as containers pile up and a rebound in consumer demand and record imports drive searches for more storage capacity, reports London's Financial Times.
Imports at the Port of New York and New Jersey were 26.4 per cent higher for the year to August than for the same period in 2020.
Meanwhile, after 41 years in the business, Sarcona has a vantage point over one of the worst of the bottlenecks that could derail US recovery.
"Demand for space and demand for people have been the greatest I have ever seen." said Sarcona Management president Michael Sarcona.
National industrial vacancy rates hit a low of 3.6 per cent in the third quarter, while the three markets closest to the New Jersey port hit a combined vacancy rate of 1.5 per cent.
The number of warehouse workers increased three per cent between January and September, a number insufficient to match the surge of goods flowing into the supply chain.
The shortage of space is also pushing up the price tenants pay to store their goods. industry rents were up 10.4 per cent in the third quarter as compared to last year.
Said Prologis CEO Hamid Moghadam: "People are kind of in a panic mode almost when it comes to buying or committing to real estate."
The 25 largest US retailers acquired 38 million rentable square feet in new industrial space last year, more than double the 2019 figure.
Meanwhile, warehouse owners are accelerating construction plans to catch up with demand, with a record 433 million square feet of warehouse space under construction in the third quarter.
With so few options near the ports, some retailers and logistics companies are pushing further inland.
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