US industrial absorption is outpacing new supply deliveries this year, according to Colliers International. US industrial inventory increased by 2.4% in 2020, while national absorption increased 3.3%.

The report analyzed activity in the top 25 US industrial markets. Inventory levels increased in all markets, some significantly. San Francisco was the only market with limited new deliveries, with inventory increasing by less that 1%. Washington DC and New York also had limited new supply deliveries, but all three of these markets have limited developable land for new construction.

Instead, emerging markets took the spotlight on new industrial construction at the end of the year. Dallas-Fort-Worth, Indianapolis, Houston, Columbus and Phoenix were at the top of the list new deliveries this year, with supply increasing by at least 3% in each market, and Indianapolis recorded the largest quarter-over-quarter change with inventory increasing 1.8%. In the third quarter, 5.1 million square feet of new industrial product delivered in Indianapolis alone. The new deliveries included Hendricks Gateway Park in Monrovia, a 1.1 millions square foot spec facility.