U.S. Rent Growth Is Higher For Mini Storage Compared To Larger Storage

According to new research from CBRE, while e-commerce growth has boosted the entire industrial and logistics real estate sector, the sweet spot has emerged: storage smaller than 120,000 square feet

An analysis of industrial construction in the US by CBRE found that “light industrial” properties have outperformed other property types over the past five years. Specifically, light industrial storage between 70,000 and 120,000 square feet saw the largest drop in availability, down 3.9 percentage points, and the largest increase in average rent, at 33.7 percent.

“Large distribution centers of 1 million square feet or more have made headlines across states in recent years and serve multi-state areas,” said Matthew Walaszek, associate director of industrial and logistics research at CBRE. “However, they are often placed in densely populated areas. The tsuen wan storage market are the most coveted properties for investors and users. These storage are the real last-touch storage, from where goods can be delivered directly to customers. ”

The relative lack of construction of light industrial facilities has helped reduce supply and boost rents. Since 1990, construction completions for light industrial storage less than 120,000 square feet have accounted for an average of 1% of total inventory in the category, according to CBRE. By contrast, since 1990, construction completions for lai chi kok storage larger than 250,000 square feet have averaged 3% of total inventory. The shortage of light industrial properties is mainly due to high land prices in dense markets and competition for space from other uses, such as lofts and offices.

Chris Zubel, senior managing director at CBRE representing the Ministry of Industry, said: “As e-commerce grows, we will continue to see strong demand for light industrial facilities, which in turn means we can expect further strong rental growth for these storage. “Logistics and Logistics Investors in the Americas. Light industry is the hottest coal in a campfire.