Space remains tight in the market, but forecasts are holding steady for the remaining balance of the year
August 15, 2022
Competition in the industrial market has been robust through the first half of the year. Fundamentals across the board continue to break records as the construction pipeline grows. Much of the heat around tenant movement in the silos is due to the influx of inventories being delivered following the supply chain crisis earlier this year as well as companies expanding inventories to avoid future supply chain shortages. On the construction front, the industrial market is expected to benefit from the additional supply, especially as some markets see sub-one percent vacancies. While non-economic factors, such as the pandemic and war, have sparked uncertainty, the industrial market continues to remain strong and stable.
Market performance categories
Leasing: Overall leasing volume increased 6% year-over-year. Logistics & Distribution companies and 3PL providers have been the leading drivers of demand.
Net Absorption: Over 221.6 million s.f. of net absorption was reported the first half of 2022.
Vacancy: Vacancy was reported at 3.4%.
Under Construction: Over 100.9 million s.f. was delivered, which was a record high. The industrial pipeline is the highest on record with over 586.7 million s.f. currently under construction.
