Warehouse/Distribution Top & Bottom Markets, Q4 2018

Warehouse/Distribution Top & Bottom Markets: Effective Rent Growth

Jacksonville, Sacramento, and Kansas City are in the top five markets once again this quarter with growth rates of 6.5%, 5.7%, and 5.3%, respectively. The nation as a whole has an average growth rate of 2.5%.

Effective Revenue Per Square Foot, Percent Change 2017Q4 – 2018Q4

Source: Reis, Real Estate Solutions by Moody’s Analytics


As expected from the industrial sector, the property level distribution had much wider ranges than the other sectors. In the Chicago and Cincinnati markets, the best performing properties had a growth rate of 37% and 48%, respectively, and were the highest overall. This is clearly far above the metro level averages of 4.9% to 5%. On the other hand, San Antonio had the worst performing properties on our chart this quarter. In this metro, a small percentage had growth rates that were -20% or lower, year-over-year.  Properties in the industrial sector show a fairly continuous range when it comes to performance.


Analysis by Victor Calanog, PhD CRE®. Calanog is the Chief Economist & Senior Vice President at Reis. He and his team of economists and analysts are responsible for the firm’s market forecasting, valuation, and real estate portfolio analytics services. He holds a PhD in Applied Economics and Management Science, trained by a dissertation committee composed of faculty from the Wharton School of the University of Pennsylvania and Harvard Business School.


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