Demand for industrial expected to remain high, but increasing new supply will ease the pressure in 2022
Cushman & Wakefield has released its North American Industrial Forecast for 2022/23 showing a projected 855 million square feet of absorption and new supply of industrial properties at 932 million square feet.
“Industrial markets across North America have been under intense pressure with little new supply and unprecedented demand over the past two years,” said Carolyn Salzer, Americas head of logistics and industrial research for Cushman & Wakefield. “This has put upward pressure on rents and driven demand for development land.”
By year-end 2021, the North American industrial market is expected to reach more than 507 million square feet of net absorption — the first time the market will have surpassed 500 million square feet. Even with an anticipated near-record level of new supply, 376 million square feet being delivered by year-end 2021, North American vacancy is expected to register 3.8 percent at year-end 2021— a 110-basis-point decrease over 2