U.S. industrial market demand at highest level since 2005
The U.S. industrial market expanded for a 26th consecutive quarter, logging 76.8 million square feet of positive net absorption during third quarter 2016, according to CBRE. This was up 18 percent over the previous quarter and was the best quarter since fourth quarter 2005. All but four of the markets tracked by CBRE Research recorded positive demand in the quarter. The Dallas/Fort Worth and Chicago markets were the leaders, each absorbing more than 8 million square feet.
A total of 52.8 million square feet of new industrial supply was added nationwide during the third quarter. As has been the trend during this cycle, deliveries were highest in major markets such as Southern California’s Inland Empire, Houston, Dallas/Fort Worth and Chicago, each with more than 4 million square feet of completions during the quarter.
Strong user demand in an already tight market put pressure on available space in third quarter 2016. As a result, the U.S. availability rat