Report: Downturn Hurts Large Warehouse Sector the Most

BOSTON-Though demand for warehouse space continues to weaken, a new report from Torto Wheaton Research reveals the impact has not been uniform across all property types. Report author Laura Stone Mortimer, a senior economist with the Boston-based firm, says warehouse performance varies substantially by asset size and type of market, with mid-sized assets between 100,000 sf and 350,000 sf exhibiting the greatest strength.

Historically, the researcher says, economic downturns have a much greater impact on larger assets as businesses scale back in the face of falling consumer demand, and the current period is no exception. She notes the availability rate for assets larger than 350,000 sf slowly began climbing in Q2 2007, rising to rise to a near record 12.7%. By comparison, she continues, mid-sized buildings have experienced continued declines in availability, while availability levels for small assets under 100,000 sf have remained stable.