U.S. industrial sector reaches all-time record low vacancy rate of 3.1%

U.S. industrial statistics revealed another record-setting quarter with demand continuing to outpace supply for the seventh quarter in a row, driving vacancy to an all-time low of 3.1 percent, according to Cushman & Wakefield in its second quarter 2022 report.

The quarter saw overall absorption of 120.4 million square feet (msf), up 3.9 percent quarter-over-quarter (QOQ) but down 10.4 percent year-over-year (YOY), while new leasing activity recorded 187.1 msf, down 15.3 percent QOQ and 25.7 percent YOY.

“While this was the first quarter in 18 months that leasing activity dipped below 200 million square feet, it was largely driven by the fact that there simply isn’t space to lease,” said Carolyn Salzer, Americas head of logistics & industrial research. “Given the robust construction pipeline and healthy market conditions, industrial leasing is on track to see another banner year.”

Rental growth continued to climb, up 6.0 percent QOQ and 19.0 per