U.S. industrial vacancy rate hits new low
The industrial property vacancy rate in the United States hit its lowest level in 2017 since the initiation of coverage in 1999, according to Ten-X Commercial’s U.S. Industrial Market Outlook report. The vacancy rate declined to 7.3 percent in 2017.
Changes in technology, supply chain and consumer habits have significantly benefited the industrial sector and continue to drive strong demand, says the report. The acceleration in e-commerce is fueling demand for distribution and warehouse space as well.
Ten-X Commercial predicts industrial demand in 2018 will remain healthy, with more than 10 million square feet of net absorption projected, slightly below the range of the past three years. However, completions of new warehouse space are higher, as vacancies drop lower and rents increase. Vacancies are forecast to tighten and additional 30 basis points to an even 7 percent by the end of 2018, says Ten-X Commercial.