By Erica E. Phillips Erica E. Phillips The Wall Street Journal BiographyErica E. Phillips @eephillips_wsj [email protected] July 11, 2018 10:30 a.m. ET 0 COMMENTS For U.S. retailers, manufacturers, importers and exporters, warehouse space is at its tightest since 2000, when the first dot-com boom was driving strong consumer spending and imports from China were beginning to surge. Economists with real-estate brokerage CBRE Group Inc. CBRE -1.44% say in a report released Wednesday that new warehouse space is getting gobbled up as soon as it’s completed. In the second quarter, demand for industrial space went beyond the 49 million square feet that came online, but supply and demand are edging closer to equilibrium.. As consumers increasingly do their shopping on the internet—even buying big, bulky items like furniture off the internet—the availability of warehouse space to store those goods and fulfill orders continues to decline across the U.S. In … [Read more...] about U.S. Warehouse Supply At Its Tightest in Two Decades
Demand supply and market equilibrium
Farm commodity prices are mixed again for the week beginning June, 18 with cotton remaining bullish. Cotton prices could move through the 98-cent area. Soybeans, corn, and wheat this week likely start the process of correcting their rapid downside move and then one of two outcomes emerge: First, corrective price move to the upside followed by a decline to test the previous low with prices moving higher, or Second, corrective price move to the upside followed by a decline to new lows. Long Grain Rice is looking at new crop price weakness, a function of demand and planting expectations Week beginning June 18, 2018 Commodity Index, $CRB – Weakness emerging due to global growth uncertainties. Oil, $WTIC – Correcting excessive bullish price move, then higher. Cotton – Bullish, but one worries about contagion due to building near-term aggregate commodity weakness. S&P 500 – Bullish, but correction and/or consolidation may not be complete. Foreign … [Read more...] about Fed bullish global growth and demand for commodities
By Erica E. Phillips Erica E. Phillips The Wall Street Journal BiographyErica E. Phillips @eephillips_wsj [email protected] April 10, 2018 5:05 p.m. ET 0 COMMENTS The gap between warehouse demand and supply appears to be narrowing. The availability of industrial real estate across the U.S. declined slightly in the first quarter, according to real-estate brokerage firm CBRE Inc., the latest signal that a market driven by fast-growing demand for e-commerce fulfillment is getting close to balance. The availability rate—which includes properties that are vacant or will soon be vacant—fell less than one-tenth of a percentage point over each quarter in the past year and a half, reaching 7.3% in U.S. markets during the first quarter of 2018, according to CBRE. By contrast, from late 2012 to late 2016, availability fell much more steeply, dropping more than two-tenths of a percentage point on average every quarter. CBRE said warehouse developers have been … [Read more...] about U.S. Warehouse Market Coming Closer to Balance
This time of year you're probably doing a lot of shopping and may be finding that some items you were hoping to buy as a gift are out of stock. But most days, people all over the U.S. go to stores to look for goods and services they'd like to buy and, for the most part, these goods and services are supplied by the marketplace in approximately the correct quantities. How does this happen? In a market-based economic system such as ours, prices play a key role in regulating supply and demand and in directing resources in the economy to their best possible use. However, there are instances where prices cannot move far enough or fast enough so that supply and demand are equal. Price floors and price ceilings imposed on an industry limit how far prices can move. Price stickiness limits the speed at which prices can adjust. Here's an explanation of these important terms: Price ceilings A price ceiling is just what the name implies: A maximum price the providers of a good or service … [Read more...] about Explainer: Why prices go up — and sometimes down
(Moneywatch) Last year ended on an up note for the real estate market: Home prices, pending sales and construction activity all increased, while the number of existing houses for sale continued to drop. At the same time, home values remain depressed, while what is expected to be slow economic growth this year could hinder the housing sector's recovery. So will 2013 be the year that buyers and sellers finally return to the market en masse, or will people continue to stay on the sidelines in hope of a stronger recovery? Many, but not all, experts believe will 2013 will be a good year to be a seller because there are fewer homes on the market, propping up prices, and mortgages are more easily available. Inventories of unsold homes in November amounted to 4.8 months of sales, the lowest level since before the housing meltdown, according to the Center for Economic Policy Research. Existing home sales rose 5.9 percent in November and are up 14.5 percent over a year ago. New home sales grew … [Read more...] about U.S. housing market finally ready for take-off?