NAIOP Projects 315M SF of Industrial Absorption for 2021
Industrial net absorption is projected to be 314.9 million square feet, according to a forecast published by the NAIOP Research Foundation. That averages out to 78.7 million square feet per quarter. In 2022, net absorption is projected to be 231.6 million square feet, with a quarterly average of 57.9 million square feet.
According to the report, the industrial sector continues as the leading property type, due largely to increased demand for e-commerce during the pandemic and the distribution infrastructure needed to support it. Net absorption rates in industrial reached their highest levels since 2000 last year, with higher rents and low vacancy rates.
“When the economy stabilizes, fundamentals will once again drive market behavior, and net absorption rates will likely mean-revert toward long-term growth trends,” the report states. “As more industrial tenants secure the space they need, net absorption rates will gradually dissipate in the coming quarters to levels that will likely be only slightly higher than economic fundamentals would have predicted before the pandemic.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).