U.S. Industrial “Well Positioned” to Weather Current Disruption
With COVID-19 not yet in the rear-view mirror, it’s too early to accurately predict the economic path forward, says Cushman & Wakefield. However, the firm says in its latest report, “it is clear that the U.S. industrial market is well positioned to weather the current disruption.”
Years of conservative development and historically strong absorption have provided the U.S. industrial market “its strongest footing ever heading into an economic slowdown, Cushman & Wakefield’s Jason Tolliver and Carolyn Salzer write in the firm’s Q1 2020 Industrial Snapshot. “At 4.9%, vacancy remains anchored near the all-time low of 4.8%.”
As a frame of reference, first-quarter vacancy is 300 basis lower than prior to the Global Financial Crisis and 160 bps below the rate before the dot-com collapse of the early 2000s.
Importantly, Cushman & Wakefield points out, “This is also the first slowdown where c-commerce will be an active driver of demand.”
Pictured: Palmetto Logistics Park, near Atlanta.
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