CHICAGO—The US industrial marketsjust had another historic year, with record-setting levels ofabsorption and vacancy, and experts say these good times shouldlast at least through the end of 2017. Tenants absorbed 63.6 million square feet of space in thefinal quarter of 2016, which propelled net absorption for the yearto 282.9 million square feet, according to a new year-end reportfrom Cushman &Wakefield. The nationalvacancy rate for all product types continued to decline in thefourth quarter, falling 30 bps from the prior quarter and 100 bpsfrom the prior year to 5.5%.
As of January 2017, the industrialsector has registered 27 consecutive quarters of net occupancygains, placing this expansion among the longest ever. It is alsoamong the strongest, with 825.5 million square feet of netabsorption for the past three years, far surpassing the 726.8million square feet absorbed from 1997 to 1999, the strongestperiod of occupancy growth in the prior cycle.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
