According to Modern Materials Handling, a strong economic outlook has caused rents for distribution centers for both physical and online retail ventures to rise. The news provider is quick to point out that this is mostly for prime spaces, which are in the best locations and have the top of the line facilities.
The news provider reports that this is a positive sign for an industry marred by the recession nearly a decade ago, which has been in recover for the past six years. However, confidence and demand have led to an increase in cost for space.
There’s certainly a demand for the space, with JOC.com reporting that vacancy rates for warehouses and distribution centers have been dropping, indicating that operations are taking advantage of the spaces currently on the market. As sales improve, that provides more resources to necessitate a space purchase.
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