US Industrial Markets Keep Record Pace In Q3

Warehouse, industrial, distribution centerThe average height of warehouses and distribution centers has risen nine feet in the past 50 years.A newer big-box warehouse.

The US industrial sector hit its 26th consecutive quarter of net occupancy gains in Q3, according to Cushman & Wakefield.

Industrial markets absorbed 74.9M SF this past quarter, a 29.1% increase compared to the year-ago quarter. Cushman & Wakefield chief economist Kevin Thorpe says industrial demand drivers and economic fundamentals such as "containerized traffic flows, transportation indices and consumer confidence" remain strong.

The sector had healthy leasing activity from both traditional users and e-commerce, fueling rent growth. Rents jumped 5.1% in Q3 compared to a year ago and more than 40% of the country has reported double-digit rent gains.

Cushman & Wakefield Logistics & Industrial Services for the Americas, lead John Morris anticipates industrial will continue to outperform the real estate market and the economy. In terms of development, 59.6M SF came online in Q3, with 159M SF of total industrial product delivered in 2016.

Markets with the tightest vacancy rates in Q3 were predominantly in California and Georgia, such as Los Angeles (1.3%), Orange County (2.2%), San Jose (2.3%), Savannah (2.3%) and East Bay/Oakland (3%).

"Since late 2011...net absorption outperformed the economy," John says. "E-commerce, urbanization, last-mile, same-day delivery and similar phenomena...are busting older market paradigms, all to the benefit of the industrial real estate market."

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Power Availability Becomes New Requirement For Shifting Bay Area Industrial Base

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds

Evergrande Founder Sentenced To Life, 56 Others Sent To Prison In China

Loud And Clear: Why Aiphone Thinks Intercom Ownership Is Best For Multitenant Buildings

The Fast-Food Exec Taking Her Real Estate Talents To The Looksmaxxing Era

EXCLUSIVE: Industrial Outdoor Storage Investor Continues Buying Spree In Metro Atlanta

Republicans, Democrats Backing Away From Data Centers Amid Rising Backlash