Get the latest news and some area history with our afternoon newsletter. It is driving up prices in ways never before seen and leaning on markets to create more space and opportunity, Sleasman explained. Industry experts have found the high-demand, inventory-constricted industrial real estate sector is changing the landscape in two important ways. Tight supply and soaring demand give way to higher prices “The whole idea of developing a property now versus where we were two years ago has gotten much more costly, much more time consuming to find the right site and much harder to build with supply chain issues,” Sommer said. But tack on the effects of record-setting trends, and the pressure is exacerbated. Finding a suitable place to develop self-storage is tough enough when looking for a location where demand is unmet and local government will allow it.
The hunt for industrial land in a tight market has proven extremely challenging. The self-storage business, due to pandemic-manifested uncertainty and a strong housing market, is similarly experiencing heightened demand. Jason Sommer, co-owner of Diamond Point Development, has intently searched the region and other parts of the country for places to construct self-storage facilities. And the country’s vacancy rate dropped roughly 108 basis points leaving it at a slim 4.5 percent. Nationally, the amount of industrial space absorbed during 2021’s first three quarters has already doubled what it was last year, according to Peter Quinn, a board member of the International Warehouse Logistics Association (IWLA). “It's like having no product,” Sleasman said, emphasizing that he anticipates the company’s December data will demonstrate little change.
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