The U.S. industrial market is facing more tempered market conditions, according to Cushman & Wakefield. The firm’s first quarter on the U.S. industrial market reveals speculative new supply coming online coupled with the cooling of absorption pushed vacancy upwards by 30 basis points in the first quarter to 7 percent, on par with pre-pandemic long-term averages.
Similar to first quarter 2024, overall net absorption started off the year with a modest 23.1 million square feet. However, warehouse and logistics facilities saw 30 million square feet of quarterly net growth, 10 percent higher than the fourth quarter 2024 total and up 15 percent when compared to one year ago.
“Modern logistics facilities continue to drive activity in more tempered market conditions. The market is recalibrating — balancing a wave of new supply with modest demand,” said Jason Price, senior director, Americas head of logistics and industrial research, with Cushman & Wakefield.
