June 21, 2017
Supply-chain modernization has led to a warehouse development boom in primary markets that handle the bulk of goods distribution. Now, the need for a deeper supply-chain presence to cover regional locations is poised to accelerate growth in secondary markets. While pent-up demand exists across most markets, the warehouse development response has been slow in secondary markets and has led to a growing supply/demand imbalance. Slower warehouse rent growth in secondary markets may have been a constraint, but now that rents have pushed past pre-recession levels, the opportunity for increased development is here.