NEW YORK CITY-Despite the notion that manufacturing has basically left the United States, the industrial sector—by several measures—is alive and well, according to new research from Cushman & Wakefield. Nationwide, through the third quarter, warehouses have experienced fourteen consecutive quarters of declining vacancies.The momentum is supported by continued strong leasing velocity and absorption, and construction levels that already have surpassed last year's total.

The uptick is due to renewed consumer confidence, contends John Morris, leader of industrial services for the Americas. “Pent-up consumer demand for housing, automobiles, appliances and other less durable goods have translated to increased spending in 2013. As corporations respond, we have seen a jump in demand, especially for distribution space. With the continued ecommerce boom, online retailers have become the fastest-growing segment of warehouse occupiers. At the same time, traditional brick-and-mortar retailers continue to drive demand, with companies like Walmart and Home Depot among the most active.”

Industrial leasing volume increased in the third quarter and strength is broad based, though Southern California, Dallas and Chicago were particularly strong. Greater Los Angeles continued to lead the nation with 28.1 million square feet leased year-to-date, followed by Chicago with 24.4 million square feet. Twelve of the 37 markets tracked by Cushman & Wakefield have reported increased activity in 2013, including 11 that experienced double-digit annual increases. Northern New Jersey posted a 37% year-over-year leasing increase, while Dallas/Fort Worth recorded a 28.2% increase.