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U.S. Industrial Absorption Sets New Records
The U.S. industrial market finished the year with 89.8 million square feet of net absorption, the strongest single quarter ever recorded, Cushman & Wakefield’s Jason Tolliver and Carolyn Salzer reported. The Q4 tally brought the year-to-date total to 268.4 million square feet, up 11.4% from 2019’s record 240.9 million square feet.
New leasing activity in the fourth quarter was 178.8 million square feet, propelling the annual total to an all-time high of 659.1 million square feet. More than half the U.S. markets tracked by Cushman & Wakefield posted year-over-year increases in new leasing activity.
Among the key drivers stimulating this level of activity was digital sales, sparking more e-commerce leasing, along with third-party logistics providers.
Although net absorption for 2021 is expected to once again top 200 million square feet, supply is anticipated to continue to outpace demand in the coming quarters, Tolliver and Salzer wrote.
Pictured: 2020 Piper Ranch Rd. in Otay Mesa,CA.
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