U.S. Industrial Posts Absorption of 100M+ SF for Third Straight Quarter
U.S. industrial continues to prosper during the pandemic, posting 102.2 million square feet of positive net absorption for the third consecutive quarter, according to Transwestern’s second-quarter U.S. industrial market report. Markets leading net absorption in both Q2 and year over year include Atlanta, Chicago, Dallas-Fort Worth and the Inland Empire.
Additionally, the national vacancy rate dropped to 5.2%, its lowest level since the pandemic began, helping drive average rents up to $6.96 per square foot. At midyear, seven out of 44 markets saw vacancy below 4%, including Greensboro, Inland Empire, Los Angeles, Nashville, New Jersey, Orange County (California), Raleigh-Durham and San Jose-Silicon Valley.
“The industrial sector is once again firing on all cylinders, making it increasingly difficult to find suitable space in prime industrial markets,” said Matt Dolly, research director at Transwestern. “High rents and supply chain issues are making secondary logistics markets increasingly attractive to occupiers and investors.”
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).