Demand for space in the United States industrial market is slowly moving toward normalization after two years of frenzied imbalance, with emphasis on “slowly,” according to Newmark's Third Quarter Industrial Market Report.
Quarterly absorption measured more than 100 million square feet for the sixth consecutive quarter yet decelerated at the quickest quarterly pace since net absorption hit an all-time high in third quarter 2021. At 100.3 million square feet, net absorption remains 65 percent above the trailing three-year pre-pandemic quarterly average. Taking into account the current pace of demand deceleration, it may take at least three or four more quarters for demand to readjust back to the pre-pandemic average, dependent on evolving macroeconomic conditions.
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