US Industrials Riding High

CHICAGO—The US industrial real estate market continued to make progress through the first quarter of 2014, showing robust absorption, declining vacancies and rising rental rates, according to commercial real estate services firm Cushman & Wakefield’s just-released research findings. Supply tightened in many markets, contributing to a leasing slowdown in January, February and March, but developers have ramped up production of industrial assets to meet the strengthening demand.

“First quarter performance continued the notable progress industrial real estate experienced in 2013,” said Cushman & Wakefield’s John Morris, the Rosemont, IL-based leader of industrial services for the Americas, in a prepared statement. He was not available for further comment before deadline. “Domestic manufacturing continues to gain traction, driving increased production and shipments, and electronic fulfillment continued to expand. As a result, the economic environment for our sector is the best we have seen in many years.”