With the growing demand for warehouse space as more supply chains move to a regional distribution network, real estate costs are becoming increasingly important in logistics management.
SONAR brings together key warehouse and real estate trends across 135 different metropolitan areas. With details including asking and effective rent prices, you can quickly estimate the cost impact of staging products closer to customers. Total warehouse inventory, vacant stock and net absorption can give you an idea of trends in each local market, as you plan your search for the perfect site.
With the increasing need to shorten length of haul and get distribution centers closer to end users, warehousing space has become a valuable commodity as availability has decreased and rates have increased.
SONAR users have access to average asking and effective rates in dollars per square foot for all of the largest markets in the U.S. Watching the cost of warehouse rates can provide insight into what areas are experiencing the most growth and development. Shippers and carriers can use this information to better design networks and supply chain movements.
In addition to warehouse rental rates, SONAR has vacancy rates by market, which will give the user insight into what areas of the U.S. are experiencing negative growth or are growing more slowly.
Several metrics are in SONAR to help companies and individuals measure how hot or cold a market is when deciding to purchase/lease new warehouse or retail space. There are also metrics that measure how fast each market is growing or declining, letting users know whether it is a good decision to open in a market or not.
Warehouse and real estate data tracked by market:
- Gross revenue
- Vacant stock
Absorption Index Retail/Warehouse (ABSIRET/ABSIWH) – Change in occupied retail/warehouse units per total occupied retail/warehouse stock – Basically the higher this number goes, the higher the rate of absorption of new retail and warehouse space, meaning the demand for space is higher.
Real Estate Completions Retail/Warehouse (COMPLRET/COMPLWH) – Square feet of new retail/warehouse space added to inventory
Households (HH) – Occupied housing units in each market
Average Household Income (HHINC) – Average household income in each market
Occupied Stock Retail/Warehouse (OCCRET/OCCWH) – Occupied amount of inventory of retail/warehouse space at quarter-end
Gross Revenue Retail/Warehouse (REVRET/REVWH) – Sum of effective rent revenue less concessions and credit loss for retail/warehouse space
Vacant Stock Retail/Warehouse (VACRET/VACWH) – Amount of available inventory of retail/warehouse space at quarter-end in units
Real Estate Inventory Warehouse (WHSQFT) – Total square feet of warehouse inventory
Warehousing Rent – Asking – (RENTA) - The rate being asked for warehouse space by market
Warehousing Rent – Effective – RENTE - The rate being received for warehouse space by market
Warehousing Vacancy Rate – WHVAC -- The percentage of available warehouse space vacant by market