The industrial market absorbed more than 830,000 sf in the second quarter, providing the impetus behind the lower vacancy rate. The market would be even more robust, if not for new supply, which kept the vacancy rate from dropping even lower, Ross reports.

Improvements are across the board. All four major property classes: warehouse, research and development/flex, single-tenants and multi-tenant are all enjoying positive absorption and declining vacancy rates.

In the first half of the year, vacancies in warehouses fell to 6.77% from 7.05%. R&D/flex space still sports a high vacancy rate of 20.22%, only slightly lower than 20.45% at the end of the first quarter.

However, 13 new buildings added slightly more than 900,000 sf to the market in the first half of the year, Ross reports. "All but two of these are located in the East or Northwest sectors with the East receiving the lion's share of the new square footage," according to the report. "Twelve of the 13 new buildings are warehouse/distribution and just one R&D/flex property was delivered."

The Ross report explains that there will be another 880,000 sf in the pipeline that is evenly balanced in terms of both product type and location.

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