The availability of industrial real estate across the United States has seen its first decline since 2021, indicating a tightening market. This trend is exacerbated by new industrial construction starts falling to their lowest levels in a decade. Link Logistics suggests that these conditions create a favorable environment for portfolios comprising well-located infill properties.
For freight forwarders and logistics operators, this tightening real estate market, especially for last-mile facilities, could lead to increased operational costs and challenges in securing suitable distribution hubs. The scarcity of available space and limited new construction may drive up lease rates and reduce flexibility for expanding or relocating facilities. This situation particularly impacts companies reliant on efficient last-mile delivery, as securing prime locations becomes more competitive. Forwarders may need to explore alternative strategies such as optimizing existing footprints, considering multi-tenant facilities, or investing in longer-term leases to mitigate future cost increases and ensure operational continuity.
