National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. Industrial Absorption Slows in Q3; First Dip in Eight Quarters
The economic headwinds have finally caught up with the U.S. industrial real estate market. Cushman & Wakefield reported that although demand still outpaces supply on a year-to-date basis, the third quarter saw overall net absorption down 18.1% from the prior quarter, putting YTD absorption 10.4% behind last year’s pace.
This marks the first time in eight quarters that supply has outpaced demand, according to Cushman & Wakefield. Vacancy ticked higher by 10 basis points to 3.2% as new leasing activity slowed and speculative construction completions swelled.
“As expected, given the current economic climate coupled with historically tight market conditions across many markets, new leasing activity was more tempered in comparison to the previous seven quarters when it exceeded 200 million square feet,” said Jason Price, senior research director for Cushman & Wakefield.
Construction completions reached a recent historical high with more than 148 million square feet of industrial deliveries in Q3. Nearly 70% of YTD completions have been spec.
- ◦Lease
- ◦Development
