CBRE: Strong demand for new industrial construction eases concerns of oversupply
Although 289 million square feet of new industrial supply deliveries exceeded 255 million square feet of net absorption nationwide in 2019, demand for this space was significant and eased any fears of oversupply, reported CBRE. By year’s end, only 39 percent of the space in new construction was available for lease, keeping the overall industrial vacancy rate near its all-time low. With robust pre-leasing, demand for additional supply should continue to keep any potential vacancy rate increase in check.
Markets with highest demand for new space are near major logistics hubs. Kansas City had the lowest vacancy rate for 2019 construction completions at 7.3 percent, followed by Miami, Baltimore and Greenville, S.C.—all at less than 20 percent. Dallas/Fort Worth was the best-performing core market last year, with nearly 75 percent of its 25 million square feet in new completions already leased.
Another 309 million square feet of space currently under construction is alr