U.S. industrial markets absorbed 53.8 million square feet of space in Q1 2017, a level well above the quarterly absorption average of 49.3 million square feet experienced during the current economic expansion. The latest industrial market report from Cushman & Wakefield found that absorption is also significantly higher than the average quarterly absorption of 40.6 million square feet registered during the last two economic growth cycles.
Cushman & Wakefield’s John Morris says the outlook for the industrial sector remains promising, and he expects 2017 to be another year of solid growth.
Key report findings included:
- National industrial vacancy rate continued to decline in Q1 2017, falling 20 basis points from Q4 2016 and 80 bps from a year ago to 5.3%
- Industrial vacancy is now a full 300 bps below the 10-year historical average of 8.3%
- Vacancy rates declined or held firm during the quarter in 51 of the 79 markets tracked
- Strong leasing fundamentals have driven vacancies for each industrial product lower than at any point in the last economic cycle
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