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 Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

· All Topics
Latest Whitepaper
Sorting Out Your Sortation Options
Guiding you through the process of evaluating and selecting the right “mission-critical” sortation solution
Download Today!
From the April 2017 Issue
How does a fastgrowing, e-commerce startup company build out order fulfillment capabilities? Thrive Market answered that question with its new facility in Indiana.
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
Putaway 101: Everything in its Place
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
ProMat closes: Make your plans for Modex 2018
With a record number of exhibitors and attendees seen at ProMat 2017, MHI anticipates more of the...
Keynote: Magic is the result of over-preparation and over-delivering to customers
During his keynote presentation Wednesday afternoon, Earvin “Magic” Johnson told a packed...

Keynote panel confirms digital supply chain shift seen in new MHI study
Wednesday’s keynote panelists agreed it is time to embrace the shift to digital supply chains seen...
MHI to honor original products, solutions with 5th-annual Innovation Awards
On Wednesday, during MHI Industry Night with Dana Carvey, the winners of the 5th-annual MHI...