U.S. Industrial Market Shows Signs of Leveling Out
The U.S. industrial market in the second quarter posted its fifth consecutive quarter of net absorption greater than 100 million square feet. However, Newmark says the market is finally showing signs of leveling out as economic and geopolitical headwinds have incited a significant slowdown in economic growth and uncertainties around demand.
The national pipeline increased 12.5% quarter over quarter to 613.1 million square feet, nearly 4% of total inventory. Conversely, quarterly deliveries reached one of the lowest totals in nearly three years; as labor shortages, increased entitlement periods and rising costs continue to impact timely deliveries.
The sheer volume of planned and delayed projects in the pipeline through 2023 may ultimately lead to rising vacancy rates. “Markets with a large amount of speculative construction delivering vacant are more susceptible to rising vacancy and stalling rent growth,” according to a Newmark team led by Rich Lachowsky, director of national industrial research.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-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 7-10 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).