- July 1, 2015: Vol. 27, Number 7

To read this full article you need to be subscribed to Institutional Real Estate Americas

Improving economy boosts U.S. industrial sector

by Loretta Clodfelter

As the U.S. economy has improved during the past few years, so has the industrial sector — the warehouses where so much economic activity is housed.

In 2015, the national industrial vacancy rate is set to decline 70 basis points to 6.5 percent, a 15-year low, according to the National Industrial Report from Marcus & Millichap. Absorption is forecast to be 170 million square feet this year, while construction is expected to provide 130 million square feet of new supply, much of it build to suit. The positive supply/demand fundamentals are projected to push up asking rents by 5.3 percent, while fewer concessions mean effective rents also will rise.

The rise of e-commerce has been especially positive for the warehousing sector, as online sales have increased to 11 percent of all retail sales.


Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy