Promising forecast for inventory control

Regardless of how corporations are executing their supply chain strategies, the end result is that they again are doing something with their industrial real estate

By ·

Regardless of how corporations are executing their supply chain strategies, the end result is that they again are doing something with their industrial real estate.

As noted in today’s news story (“U.S. industrial market ending year on a positive note”) this movement already is beginning to chip away at available inventory nationwide. Absorption is improving notably. At negative 6.2 million square feet through the third quarter of 2010, this number is significantly better than the negative 118.5 million square feet recorded at the end of the third quarter of 2009.

2010 is on track to see the most limited amount of new construction added to the United States industrial inventory since Cushman & Wakefield began tracking the market. We expect that the lack of new product (12.3 million square feet of completions through the third quarter of this year, as compared to 136 million square feet completed during 2008) will push this absorption into the black by as early as mid-2011. This will alleviate the prolonged downward pressure on rents that we have experienced during the past two years.

This all is encouraging news going into 2011. At this time next year, the industrial brokerage firm hopes to be reporting a truly healthy picture illustrated by a continued check on new construction, lower vacancies, positive absorption and healthy rent increases.

Until then, SCMR joins them in looking forward to watching the beginnings of the turnaround grow into tangible, positive near-term progress.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Supply Chain Visibility: Illuminating the Path to Responsive, Agile Operations
Supply chain visibility is not an end, but a tool. It is the means to achieving true supply chain effectiveness, agility and ultimately, corporate profitability.
Download Today!
From the December 2017 Logistics Management Magazine Issue
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
2018 Customs & Regulations Update:10 observations on the “digital trade transformation”
Moore on Pricing: Freight settlement and your TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2018 Rate Forecast
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...

2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...