Spec Industrial Space Starting Up Again

Particularly in fourth-quarter 2012, the industrial sector saw a definite uptick in demand. For the fourth quarter of 2012, net take-up of industrial space in the US was at 40.8 million square feet, according to a report from Cassidy Turley. That’s not only up from 27.5 million square feet in Q3, it also marks the second-strongest quarter since the firm began tracking the market in 1993. In the past two years alone, 205 million square feet of warehouse space was taken up, more than making up for the 145 million square feet that was lost to the recession.

Much of the demand is being led by big-box product, which began mushrooming across the country after the worst of the recession passed. Within that category, a sea change is occurring from old-school pick-and-pack warehousing and distribution models to high-tech, automation-heavy facilities requiring skilled workers and engineers. This change has largely been driven by rising online retail sales and the need for manufacturers and retailers to move merchandise quickly from distribution centers directly to consumers’ homes.