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Industrial Real Estate Is ‘Running Full-Throttle,’ CBRE Exec Says

Surging demand has some developers struggling to keep up new warehouse supply in Atlanta.

The US industrial market is red-hot—the sector continued its record run of net occupancy gains in Q3 while the availability of space shrank for the 26th consecutive quarter.

That’s according to the latest analysis from CBRE, which shows the availability of industrial space across the US declined by 20 basis points, falling to 8.4% and marking the longest stretch of consecutive quarterly declines since CBRE started tracking data in 1989. The industrial sector can thank e-commerce, which shows no signs of stopping as it continues to take over growing portions of overall retail sales, for its momentum.

“The industrial market is running full-throttle,” says CBRE Chief Economist in the Americas Jeffrey Havsy. “The pace of demand has been running nearly double that of supply, and vacancy continues to decline in big chunks.”

He says he expects the sector to remain healthy for the next several quarters as fundamentals continue to reach equilibrium.