U.S. Industrial Occupancy Posts Largest Annual Growth on Record
The U.S. industrial market set new records across multiple key performance indicators, according to Transwestern’s third quarter U.S. Industrial Market report. More than 540 million square feet of net absorption was reported over the past four quarters, the first time that occupancy has increased by more than 500 million square feet year-over-year. Q3 saw net absorption of 158.8 million square feet, the largest quarterly growth since 2008.
Asking rents increased to $7.11 per square foot in Q3, with more than one-third of the 44 tracked markets reporting double-digit percentage growth Y-O-Y. It marked the first time the average asking rent for industrial space in the U.S. surpassed $7 per square foot.
“We expect continued elevated net absorption as pre-leased construction projects are delivered to the market,” said Matthew Dolly, research director at Transwestern. “Further, the boost in rents is making redevelopment opportunities more feasible, which will benefit both core and expanding markets such as Savannah, Austin and Pennsylvania’s Lehigh Valley.”
Pictured: Turnpike Logistics Center, West Palm Beach, FL.
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).
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