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North VA Industrial Warehouse Rents Poised to Benefit from Supply Chain Woes
As effects from COVID-19 continue to exacerbate global supply chain constraints, commercial real estate in Northern Virginia sits poised to benefit from the trend of surging transportation costs, according to the Northern Virginia Industrial MarketView Q3 2021 by CBRE.
Backlogged ports and shortages in the trucking industry have put tremendous upward pressure on transportation costs, explains the report. Despite a nearly 15% increase quarter-over-quarter on warehouse rents in most coastal markets, rents are a relative bargain when looking at a company’s total supply chain.
The analysis adds that positive momentum continued in Q3 2021 and leasing activity is expected to remain high as the holiday season approaches. Following more than 30 quarters of positive net absorption, Northern Virginia posted another 293,380 square feet of occupancy growth in Q3, pushing vacancy down 30 basis points to a new record low of 4.4%. Gross leasing volume ended the quarter at 466,437square feet.
- ◦Economy
