Industrial Market Sees Increased Absorption Activity in Secondary Corridors
Transwestern’s national industrial report for the second quarter of 2018 revealed that 37 of 47 markets posted positive absorption for the quarter, and 43 of 47 posted positive absorption for the previous 12-month period. Brisk absorption in the majority of primary and secondary markets has kept the national industrial vacancy rate low, with 30 markets recording vacancy at or below the U.S. average of 5%.
Transwestern researcher Matthew Dolly says, “After a slow start to the year, we saw a sharp uptick in consumer spending in the second quarter, which boosted e-commerce activity and contributed to job growth in the trade, logistics and transportation sectors. In markets where absorption cooled somewhat, the issue is not lack of demand but a wait for new construction to deliver.”
While leasing at coastal port markets such as the Inland Empire and New Jersey continued unabated, Columbus and Cincinnati, OH; Charlotte, NC; and Phoenix were a few of the secondary corridors that made the top 10 for absorption in Q2, further fueling the conversation about labor shortages in the warehousing, transportation and construction industries.
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