b'24American Journal ofTransportation ajot.comLogistics properties still in demandbut more vacancies LOGISTICS Logistics properties remain in demand, albeit after an easing inREAL ESTATEover the last two quarters. But are the logistics real estate market dynamics changing underfoot?By George Lauriat, AJOTComingoutofCOVID,America rather than in North- demic. Across much of Europe logisticsproperties,whethereast Asia. and Asia a limited supply of theybewarehouses,DCs,AndTiisntaloneinitsmodern energy efficient space terminal spaceorjustaboutassessmentoftheindustrialis constraining activity. While anything related to the move- real-estate market.In a Jonesgrowth in average rental rates mentoffreight,wereinLangLaSalle,Inc(JLL)moderatedacrossallthree heavy demand. How heavy?research report issued in Mayregions, long term fundamen-Warehouseswereliterally2024,theglobalrealestatetalsintheindustrialsector overflowing with freight andcompany noted, On the indus- remains strong, supported by evenparkinglotsbecametrialside,firstquarterleasingnearshoring requirements and adhocterminals.Thereactivitydeclinedgloballyasdemand for high quality, sus-justwasntenoughvacantdecision-makingslowedamidtainable space that will allow spacetostore,process,andgeopoliticalandeconomicUStechnologyintegration effect transport for the surgeuncertainty. In the US, occupi- and automation.offreight.Anotherfactorers continue to manage throughAnd a shift in warehouse underpinningthisdemandthe record amount of space that(DEMANDcontinued on for space was the rapid rise inwas leased following that pan- page 26)e-freight that has moved into urban areas squeezing space big and small.Anditwasntjustthe logisticsnichethatfeltthe pinch,virtuallyallindus- Built for trialpropertieswereunder siege.AsColliers,aglobal realestatecompany,wroteGrowing Business intheir20234thquarter report, Following two years ofwhite-hotdemandfor industrialspace,supplyand demandfelloutofbalance during 2023.AccordingtoColliers report,developerscom-pletedarecord607,000,000 squarefeetofnewsupply118-ACREand nearly tripled the yearsSHOVEL-READY BUSINESS PARKnetabsorptionrateof231 millionsquarefeet,which flippedthesupplyand demand balance going into 2024.Thiswasreflectedin highervacancyratesas,the USaveragevacancyratesAs the only deep-water seaport directly on the U.S.-Mexico border, increased by 194 basis pointsthe Port of Brownsville is the ideal location for growing your business.overtheyearto5.55%,the highestsincethesecond quarterof2016,according to Colliers. SUITED FOR MANUFACTURING & LOGISTICSa n ewy ears ameP roBlemsThe higher vacancy rates forindustrialproperties,par- OSTOS RD.ticularly in the logistics marketLOT 1 LOT 2niche, is something of a glass18 LOTS AVAILABLE FOREIGN-TRADE ZONE #62 11.49 Ac 9.81 Achalfempty/halffullconun- ALL UTILITES IN PLACE DESIGNATED SITE drum. Ti (Transport Intelligence),LOT 9 LOT 10 LOT 15aproviderofsupplychainLOT 3 LOT 4 4.59 Ac 4.71 Ac 4.60 Acmarketintelligence,intheir4.82 Ac 3.48 AcWarehouse Tracker Q1 2024LOT 11 LOT 12 LOT 16reported,Vacancyhascon- DIRECT ACCESS TO CONNECTIVITY TO 3 4.71 Ac 4.71 Ac 4.76 ActinuedtoriseacrossallthreeUSMCA CORRIDOR CLASS 1 RAILROADS LOT 5 LOT 13 LOT 14 LOT 17majorregions[Europe,North5.82 Ac 4.65 Ac 4.65 Ac 4.71 AcAmerica and Northeast Asia], althoughvacancygrowthhas been slowing in light of a con- LOT 6 LOT 7 LOT 8 LOT 18tractingconstructionpipeline24/7 SECUREDDIRECT ACCESS TO8.74 Ac 6.16 Ac 6.05 Ac 7.35 Acand less completions. VacancyFACILITIES OVERWEIGHT CORRIDORremainssignificantlyhigher than Q1 2022 due to an influx of new supply and moderat-ing demand. But Ti added an important1000 Foust Rd. Brownsville, TX 78521caveattotheanalysiscom- (956) 831-4592menting, It should be notedportofbrownsville.comthat vacancy rates remain at historic lows, although much more so in Europe and North'