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Unprecedented Surge in Speculative Construction No Match for Logistics Demand

Supply-Demand Balance Expected To Remain Intact Despite Record Construction Levels
A logistics facility under construction in Rahway, New Jersey. (CoStar)
A logistics facility under construction in Rahway, New Jersey. (CoStar)
By Andrew Zola
CoStar Advisory Services
June 14, 2022 | 8:32 P.M.

The logistics property sector is experiencing its largest supply wave seen to date. The staggering amount of new speculative space coming online would be cause for alarm if it was any other property type. However, the rapid pace of construction is only exceeded by leasing activity in the sector, as net absorption of logistics space across the U.S. reached a record level of 470 million square feet in 2021.

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News | Unprecedented Surge in Speculative Construction No Match for Logistics Demand