In The United States The Demand For Warehouse Space Is Still Growing
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Online shopping is becoming more and more popular. Sellers, in order to meet the expectations of consumers, look for the best possible solutions. It turns out that online sales require more storage space than brick-and-mortar sales, which is why the demand for warehouse space increases with the growth of online trade.
In this article:
- US CPI and what does it mean for investors?
- Magazine dominance
- The largest ever bond issue by India's Housing Development Finance Corp
US CPI and what does it mean for investors?
After months of good news in the fight against inflation, the January report on the Consumer Price Index showed that progress in bringing down inflation is slower. Although it seems that the trend towards lower inflation is still on track
For investors, more sticky inflation means interest rates can stay higher for longer.
Increasingly, they expect the Fed to hold off on interest rate hikes until the end of the year, the latest inflation report, coupled with the Good Jobs Report released earlier this month, shows that hopes may be waning.
The latest data changed expectations that the Fed will raise interest rates and hold them longer.
January's CPI report is potentially difficult news for both bond and equity markets, which have increasingly bet that the Fed will soon stop raising interest rates and start cutting them well before the end of 2023.
The January CPI report showed that progress in bringing inflation down is moving more slowly than many in the markets thought.
— Morningstar, Inc. (@MorningstarInc) February 14, 2023
For investors, stickier inflation means interest rates potentially staying higher for longer. Here's what to know. https://t.co/oMMcguky0C
Magazine dominance
According to CBRE, another nearly 190 million square feet of warehouse space was under construction in North America in 2020, with more than 43% of the buildings pre-leased.
This demand is being driven by retailers who are expanding their e-commerce business during the online shopping boom and investing in faster delivery thanks to consumer expectations. Retailers are also securing more US warehouse space to cushion the impact of future supply chain shocks, such as those caused by the coronavirus pandemic.
JLL estimates that by 2025, the US may need an additional 1 billion square feet of new industrial space to keep up with demand.
This forces industrial developers to get creative and find more unconventional places.
The U.S. is facing a warehouse shortage. What does this mean for American consumers and business people from Wall Street to Main Street? Watch the full video here: https://t.co/0frYl0vhY7 pic.twitter.com/lnTxxJroki
— CNBC (@CNBC) February 15, 2023
The largest ever bond issue by India's Housing Development Finance Corp
India's Housing Development Finance Corp (HDFC) aims to raise at least 50 billion rupees ($603.4 million) through the sale of 10-year bonds on Thursday. If the company raises the full amount, it will also be the largest-ever private debt issuance by an Indian company.
Indian lender HDFC's biggest-ever bond issue to see strong demand - bankers https://t.co/3IH1i2XeZR pic.twitter.com/cgZ2ziNKzh
— Reuters Business (@ReutersBiz) February 15, 2023
