The volume of warehouse construction has reached the lowest level in over a decade.  The decline is attributed to a combination of high interest rates and decreasing demand.

Atlanta, the leading warehouse market, has recorded a 70 percent reduction in average construction starts over the past four quarters compared to a five-year average.

It is estimated that most construction projects initiated within the past nine months will be completed.  The current situation contrasts with 2022 following demand for logistic services  stimulated by an upsurge in demand during the COVID period through subsequent recovery of the economy.

Apart from high interest rates, developers have difficulty in demonstrating their capacity to service loans thereby reducing availability of capital from banks.