Colliers Principal: Industrial Vacancy, Demand Looking Strongest In Decades
US industrial vacancy hit its lowest in 10 years during Q4 ’15, according to Colliers’ North America Industrial Market Outlook report, published Wednesday.
Jack Rosenberg, Colliers’ national director logistics and transportation, tells Bisnow that despite little media coverage of the sector, industrial is seeing of some of the hottest conditions in the last 35 years with strong demand and minimum vacancy.
“Industrial real estate is a little bit like a sleeper story,” Jack says. “But in this sector we’ve been singing ‘happy days are here again’ since 2011.”
Industrial’s strong showing comes in the face of rock-bottom oil prices weighing on oil firms—but Jack says that, rather than having a negative effect, the low oil costs are actually a boon for industrial on the whole.
“In general the lower prices for oil are good for everybody else,” Jack tells us. “If transportation is half the cost, it drives down the cost of supply chains.”