Warehouse rents across the U.S. have increased by an average of 25%.

A new report shows that warehouse rents in the United States are rising sharply during the epidemic. Some warehouse tenants who have signed long-term contracts have to face rent increases when renewing their contracts.

According to a recent report released by US real estate company CBRE Group , industrial property leasing prices have increased by an average of 25% compared to the prices of previously signed long-term contracts .

The price increases are a result of a rush for distribution space sparked by strong consumer demand and a surge in e-commerce business, and these rising costs are also being extended to customers with long-term contracts, who are also facing the impact of rising warehousing fees. John Morris, head of industrial and logistics at CBRE , said they had never seen such high rental growth rates .

CBRE said in an earlier report that the national average warehouse vacancy rate fell to 3.6% in the third quarter from 4.3% last year , the lowest level since 2002. Space is particularly tight in major distribution centers like Southern California's Inland Empire, where vacancy rates recently fell to 0.7 % .

Meanwhile , warehouse leasing rates are also rising in the third quarter , up 10.4% from the same period last year . The rise in profits is more pronounced in high-demand areas . In central New Jersey, Philadelphia and inland areas near the ports of Los Angeles and Long Beach , warehouse rents are now more than 60% higher than they were in 2016 .

The increase in warehouse rents is part of the increase in costs across the entire supply chain . Over the past year, costs across the entire supply chain have continued to increase, from raw material prices to freight costs to warehouse rental costs.

CBRE executive Morris said warehousing typically accounts for 4% to 6% of a company's overall logistics costs , which far exceeds labor and transportation expenses , but clients are powerless in the face of these rising warehousing fees.

Many retailers and manufacturers are passing on rising supply chain costs to customers, which is also contributing to record high U.S. inflation.

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