U.S. industrial markets maintained record pace in 2016
U.S. industrial markets absorbed 63.6 million square feet of space in the final quarter of 2016, which propelled net absorption for the year to a record-setting 282.9 million square feet, according to Cushman & Wakefield. As of January 2017, the industrial sector has registered 27 consecutive quarters of net occupancy gains, placing this expansion among the longest ever. It is also among the strongest, with net absorption for the past three years (825.5 million square feet) surpassing the strongest period of occupancy growth in the prior cycle, 726.8 million square feet from 1997–1999. Jason Tolliver, head of industrial research for the Americas, says the U.S. industrial market is positioned well heading into 2017 and he expects more of the same. He notes that economic data reflect an increasingly confident consumer, and given solid labor markets and firmer wage growth, consumer spending should power industrial absorption, particularly for warehouse.