Skip to main content
Industry News

Higher interest rates unlikely to dent warehouse demand next year

By December 29, 2022No Comments

The Federal Reserve’s rate hikes have made themselves felt in a big way among big money that invests in U.S. logistics real estate. But the aggressive monetary policy has, and is expected, to do little to change the cadence of robust leasing activity, low vacancy rates and soaring rents into 2023, according to various experts.

There isn’t much doubt that interest rate volatility during 2022 paralyzed much of the institutional investment community. Many investors went “pencils down,” industry lingo for backing away from potential deals, as a result of a sudden lack of visibility into transaction outcomes. Yet vacancy rates continued to tighten throughout the year and rent growth went along for the ride.