Industrial vacancy rises 60 bps to 4.1% on new supply and slowing demand

Overall industrial vacancy rate increased by 60 basis points to 4.1 percent throughout the second quarter, marking the first time since mid-year 2021 in which the rate exceeded 4 percent, according to Cushman & Wakefield in its report on second quarter industrial stats.

Fueling the rise in vacancy has been the strong completion totals of speculative developments across the marketplace coupled with the consolidation and right-sizing of occupiers due to tempered consumer demand and elevated inventory levels.

“While we have seen the amount of industrial space under construction drop, we are now seeing the impact of the robust pipeline of product coming to market and easing pressure on markets that were at historically low vacancy rates through the pandemic,” said Jason Price, senior research director U.S. industrial and logistics at Cushman & Wakefield. “Coupling this with tempered consumer demand, we see generally softening market conditions.”

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