Industrial continues smashing records: Demand outpaces supply

Fourth quarter U.S. industrial statistics showing record-setting absorption exceeding 500 million square feet, and vacancy dropping below 4 percent for the first time ever, at 3.7 percent, according to Cushman & Wakefield. Rental rates are up 3.2 percent quarter-over-quarter and 9.5 percent year-over-year.

“We are seeing unprecedented low vacancy and incredibly high demand for industrial space across the United States. Demand is outpacing supply by a wide margin — almost 50 percent — and new leasing activity totaled 879.9 million square feet, a new record. This level of demand put the market in place to see the first year ever of new leasing activity surpassing 800 million square feet at year-end,” said Carolyn Salzer, Americas head of logistics & industrial research for Cushman & Wakefield. “This continues to put upward pressure on rental rates, setting a new record of $7.39 per square foot.”