Pay Dirt: Industrial Land Prices Rise Sharply
Distinct development patterns have emerged to support e-commerce fulfillment, and are reflected in the increasing cost of land. In 2017, land prices rose sharply for development of warehouses – both “first-mile” and “last-mile” – due to strong demand and a diminishing supply of viable sites. In the 10 most active warehouse construction markets, rising land prices are contributing to higher rental rates, which remain a small component of total logistics costs.
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