Marketplace: The inventory of small warehouses isn’t meeting demand

Marketplace: The inventory of small warehouses isn’t meeting demand Main Photo

4 Mar 2025


News

A growing number of businesses are struggling to find smaller warehouse spaces, even though the pandemic-era uptick in warehouse demand has cooled. According to real-estate services firm Cushman & Wakefield, the vacancy rate for U.S. warehouses under 100,000 square feet was 3.9% in the fourth quarter, much lower than the 6.7% overall vacancy rate.

This is partly because in the past five years, developers have focused on constructing buildings larger than 100,000 square feet to accommodate growing e-commerce operations, and small warehouses are often in urban and suburban areas where space is tight and land is expensive.

Click here to view the original article from the Marketplace.