Industrial market to remain strong through 2014
The U.S. industrial market looks to continue its strong recovery through the end of 2014, with national vacancy rate expected to decline by 100 basis points to 7.1 percent by year’s end and national rents projected to increase by 5.1 percent, according to Marcus & Millichap’s Industrial Research Market Report for the first half of 2014.
The improving fundamentals are being driven by the growing economic momentum nationwide, as Marcus & Millichap forecasts a 2.0 percent increase in total employment (approximately 2.7 million jobs added) and GDP growth of 2.5 percent to 3.0 percent by year’s end. The industrial sector is also benefiting from growth in U.S. exports, which totaled $2.0 trillion in 2013, a mark 15 percent greater than the previous peak in 2008.
Strong rates of absorption — 239 million square feet in 2014 alone — and growing but still limited