Warehouse business catches fire, boosted by pandemic, e-commerce

The expansion of e-commerce, along with the logistical nightmare that the Covid-19 pandemic has generated, has resulted in an increase in demand for warehouse space in the United States.

"Finding the right location for clients has been a huge challenge," said Michael Schipper, a commercial real estate consultant in New Jersey and New York.

For the past year and a half, available space has been progressively decreasing, with the vacancy rate presently at 3.4 percent.

According to commercial real estate firm Jones Lang LaSalle, developers delivered 90 million square feet of new warehouse space in the first three months of the year.

In northern New Jersey, demand is so strong that purchase prices have tripled or quadrupled in just six years.

According to Beroe, a data analytics organization, national average rental costs have increased by 22% in the last two years.

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