Jul
14

U.S. Industrial Space Market Maintains Record Pace

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warehouseCushman & Wakefield announced Monday that U.S. industrial markets absorbed a record-setting 70.1 million square feet (msf) of space in the second quarter of 2016, up 6.0 percent from the same period a year ago, and propelled year-to-date absorption to 132.2 msf. Strikingly, 38 U.S. markets saw over 1 msf of absorption during the second quarter with 11 markets witnessing over 2 msf of quarterly net occupancy growth. This marked 25 consecutive quarters of net occupancy gains for the industrial sector with the current quarter’s absorption reaching a new cyclical high.

The national industrial vacancy rate continued to decline in the second quarter, falling by 30 basis points (bps) from the prior quarter and 80 bps from the prior year to 5.8 percent. Industrial vacancy is currently tracking at the lowest level of the past 30 years and is a full 270 bps below the 10-year historical average.

Kevin Thorpe, Cushman & Wakefield’s chief economist, says that despite a series of shocks to the U.S. economy this year and heightened uncertainty emanating from Europe, economic fundamentals remain mostly solid.

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