![]() After several years of national growth, warehouse construction is slated to see a decline in the next twelve months, according to several industry sources. The sector enjoyed unprecedented growth throughout most of the Covid 19 pandemic as such online retailers as Amazon embarked upon new warehouse and fulfillment center projects to store and sort goods ordered by customers. In its recently published 2023 outlook, the commercial real estate broker CRBE is forecasting an overall decline of 10% to 15% in the industrial and logistics sector, which includes warehouses. San Francisco-based Prologis Incorporated, the largest owner in the world of logistics warehouses, last month said it is anticipating a significant 60% decline in development starts. Overall, warehouse development starts could drop to less than 175 million square feet this year, down from 419 million square feet in 2021 and 470 million square feet last year. The decline in such starts, in fact, is expected to drop to its lowest point since 2016 when it stood at 178 million square feet. Meanwhile, warehouse demand in Mexico, says the publication Freightwaves, is “expected to hit an all-time record” in 2023. Deliveries of new warehouse facilities will “be absorbed quickly because Mexico’s industrial vacancy rates sits at an all-time low 1.4%.” By Garry Boulard
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