Inventory Management Needs to Increase as Warehousing Market Continues to Grow in 2013

The demand for U.S. warehouse space moved from the recovery phase to the expansion phase in the 4th quarter of 2012–a trend that is projected to continue through 2014, according to CoStar Group.

According to CoStar’s 2012 Year-End Industrial Review and Outlook, there was a positive net absorption of warehouse space across the U.S. late in the year, lowering the vacancy rate to 8.9 per cent among the 210 markets tracked by CoStar, a decline of 30 basis points.

CoStar markets logged 103.8 million square feet of net absorption in 2012, with positive space absorbed in 151 markets accounting for 120.7 million square feet and 59 still reporting negative absorption totaling an extremely low -16.6 million. The 7 million square feet of negative absorption in the fourth quarter was the lowest quarterly total since 2005.

According to Rene Circ, director of industrial research for CoStar’s Property and Portfolio Research (PPR), and Senior Economist Shaw Lupton, in spite of increased warehouse leasing in the fourth quarter, current market projections suggest that leasing velocity remains weak. The two real estate economists noted, however, that the 4th quarter conditions show ripeness for improvement as both tenant move-ins and move-outs are running below historical averages, suggesting a set stage for new demand growth and increased net absorption in 2013.

“On net, this was a landmark [fourth] quarter in the sense that we’re finally in the black in terms of overall demand,” Lupton said.

In addition to demand gains in larger, newer building coveted by national distributors, “we’ve just recently started to see increasing improvements in the rest of the market as demand spills over in the widening economic recovery, including an improvement in the housing market.”

“After everything the industrial market’s been through in this cycle, including the worst demand losses on record, this is one of the reasons we like this sector in a slow-growth economy,” Lupton said.

Larger Warehouse Space Calls for Stronger Inventory Management

With companies investing in larger warehouse spaces, there is room for increased inventory volume. It also means more room for error–but it does not have to. CoreIMS inventory management software helps vendors manage multiple items, vendors, and customers all from one program.

CoreIMS software is a powerful application that manages all of a company’s critical information all in one place. It includes great features like easy to generate timely reports, readily available product availability information for customers and more.

With the warehousing market projected for continued growth over the next couple of years, there is no better time than now to invest in new inventory management software from CoreIMS!

About CoStar Group

CoStar Group, Inc. (NASDAQ — CSGP) is commercial real estate’s leading provider of information and analytic services. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe with a staff of approximately 1,500 worldwide, including the industry’s largest professional research organization.

About CorePartners™

CorePartners™ is a high-technology computer engineering company specializing in Inventory and Warehouse Management Systems. CorePartners™ has successfully delivered projects for clients in the USA and Europe. Our customers include Nortel Networks (UK), Sabre Systems, Gensym, British Petroleum and others. For more information about CorePartners™ visit: