Even though demand for industrial overall is moderating, it is still high compared with historical standards, according to a report, “Changing dynamics of industrial real estate,” by Ibrahiim Bayaan, director of industrial real estate, Americas, Nuveen Real Estate, which was published in the September issue of Institutional Real Estate Americas. “More than 850 million square feet of industrial space is currently under construction across all U.S. markets, of which nearly 300 million square feet is already pre-leased,” says Bayaan. “Current vacancy rates are so low that even if all speculative space under construction is delivered completely vacant, vacancy rates in the sector overall would only rise to 6.4 percent, still below the historical average vacancy of 7.2 percent.” Looking forward, infill locations and smaller light-industrial spaces will be more defensive against increasing supply, according to the report. To access a pdf of the Sponsored Section,
