July 14, 2020
Despite market uncertainty around the global pandemic, industrial demand remains strong, Cushman & Wakefield reports. U.S. vacancy ticked up by 30 basis points to 5.3%, but that alleviated some pressure on supply-constrained markets.
New leasing activity came in at 271.1 million square feet year-to-date, slightly down from a year ago. The second quarter was slightly slower due to pandemic-related uncertainty, but still managed to exceed 117 million square feet.
“Two quarters in a row of 40-plus million square feet of positive absorption and year-to-date leasing on par with 2019’s record leasing year are positive signs for the markets, even as businesses adjust to COVID-19,” said Jason Tolliver, global head of newCommerce research for Cushman & Wakefield.
Chicago led the country in leasing volume with 21 million square feet in the first half, followed by Atlanta with 18.8 million square feet, and the Inland Empire with 18.2 million square feet.
Pictured: 2770 Alft Ct. in Elgin, IL.
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