Industrial availability rate drops for 25th quarter
The availability of industrial space in the United States declined for the 25th consecutive quarter, with e-commerce continuing to fuel warehouse demand, according to CBRE Group.
Industrial availability declined to 8.8 percent during the second quarter 2016, down 20 basis points from first quarter 2016, to its lowest level since second quarter 2001. Of 57 major U.S. markets tracked by CBRE, 37 registered declines in their availability rate in the second quarter, marking a slight gain from the 35 markets which did so in the first quarter.
CBRE expects developers to complete construction of roughly the same amount of industrial space in the 57 markets this year as they did in 2015, when they delivered 150.5 million square feet. That tally, while robust, is nonetheless well short of the 10-year high of 213.5 million delivered in 2006. However, the planned pipeline is continuing to grow.
E-commerce has pushed the industrial availability rate to unu