Overall, the industrial vacancy rate rose another 40 basis points in the second quarter, pushing the vacancy rate to 6.1 percent, marking the first time the rate has exceeded 6 percent in the past nine years, according to the latest data by Cushman & Wakefield. While vacancy continues to edge higher, absorption doubled in Q2, with 46.3 million square feet of space reflecting healthy market fundamentals.
“Although vacancy has continued to climb, it remains well below the 10-year pre-pandemic (2010–2019) average of 7 percent,” said Jason Price, Americas head of logistics & industrial research at Cushman & Wakefield. “Despite the rise in vacancy, industrial markets are showing increasing levels of demand after a sluggish Q1. New supply is leveling off as developers wait for the market to catch up — we expect that vacancy will peak early next year at 6.7 percent as the markets stabilize.”
Meanwhile, asking rent growth continued to cool, as nationwid
