America’s Red-Hot Warehouse Market Shows Signs of Cooling

America'S Red-Hot Warehouse Market Shows Signs Of Cooling - Medium

A pandemic-driven boom in warehousing demand is showing signs of slowing, as companies grow more cautious about leasing in an uncertain economy and look to pare back the big inventory stockpiles that have swamped storage space this year.

Razor-thin vacancy rates have started to tick upward and one measure of leasing activity in the U.S. fell back in the third quarter to the lowest level since the start of the pandemic. Warehouse space remains tight, with some companies still storing goods on trailers outside distribution centers, but the broader figures suggest the pressure on one supply chain choke point is easing.

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