North America's Q3 Industrial Outlook
Following the sharp bounce-back in the industrial market, recovery is now taking a more gradual trajectory. Overall, in North America, third quarter vacancy has increased to 5.7%, supply has increased to 289 million sq. ft. and net absorption has decreased to 141 million sq. ft. The availability of short-term leases is beginning to subside as landlords presume occupiers are more comfortable making decisions in the “pandemic economy”. The strongest absorption rates were in regional distribution hubs including Phoenix, Inland Empire, Dallas-Fort Worth and Indianapolis.
Millions of Americans now have no choice but to shop online. This means logistics, last mile and distribution centers are likely to witness continued, strong, occupier demand. Other sector’s vacancies are forecasted to expand over the near term which will soften pressure on rents.
Click here to view industrial statistics of North America’s top 36 markets along with an overview of Cresa’s industrial services and process.