The industrial sector kicked off the year with surging demand outpacing supply for the first time since the first quarter of 2019 and record-high rents hovering at $6.90 per square foot nationally, according to a new report by Cushman & Wakefield. 

The first quarter of 2021 showed market absorption of 82.3 million square feet (msf), the most space ever absorbed in a first quarter of any year reported by Cushman & Wakefield and a number that's up 78.2% over the 46.2 msf reported in the same period last year.  Warehouse and distribution space was the strongest secondary property type with 77.9 msf of net absorption, according to C&W data, with manufacturing and high-tech space also ending the quarter strong.

Positive absorption was noted in 62 of the 81 markets tracked by the firm, and 23 markets posted more than 1 million square feet of positive net absorption. Of those, the Inland Empire, Houston, Atlanta, Dallas/Fort Worth, Chicago, Central New Jersey, Milwaukee, Detroit, Phoenix and Columbus accounted for 56.4% of all new completions.