Warehouse vacancy ticks up slightly

Warehouses have been hot properties over the past few years, as companies try to streamline their supply chain in order to better keep up with customer demand. As there is a greater need for providing products at a lightning speed rate, companies are trying to buy up warehouse space in key areas to fill with inventory that they can deliver quickly.

Moving flat shelf carts around filled with similar inventory goes on throughout the day, with workers racing to properly manage inventory and make sure they’re fully stocked.

However, while there has been a surge in demand for building warehouses, the trend could be slowing down a bit. According to Industrial Distribution, there is a lot more vacant warehouse space available than in previous years. Still, the news provider reports that this isn’t a reflection of a drop in demand, but rather there has been enough space built up over the years that will make sure the demand is being met.

According to Manufacturing.net, new warehouses have increased by more than 10-fold since 2010, which indicates that builders are really listening to demand. Because so many retailers are looking to increase their supply chain operations, there’s little risk to building the space and having it stay vacant. However, if demand has dropped, new warehouse construction may slow down a bit.