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Vacant Spec Deliveries Push U.S. Industrial Vacancy Up 30 BPs
Driven mainly by vacant speculative deliveries, the national industrial vacancy rate edged higher in the third quarter, climbing 30 basis points to 6.4%, Cushman & Wakefield said Monday. It was the lowest quarterly increase in vacancy since Q4 2022.
Overall net absorption in the third quarter measured 29.5 million square feet, down from 45 million square feet recorded in Q2 but 40% higher than Q1’s 21 million square feet. As a result, approximately 96 million square feet of industrial product has been absorbed since 2024 began.
“Industrial vacancy rates remain below the 10-year pre-pandemic average of 7% as new supply slowed and overall absorption remained soft, but positive,” said Jason Price, senior director, Americas head of logistics & industrial research at Cushman & Wakefield. “We expect that net absorption will more than double in 2025 as leasing activity accelerates with greater economic certainty.”
Q3 2024 marked the first time since Q1 2022 that less than 100 million square feet of deliveries were recorded. The 90 million square feet of new construction in Q3 was the lowest total since Q2 2020’s 86.9 million square feet and was down 29% compared to Q2 2024.
- ◦Lease
- ◦Development
