Accelerated rent growth nationwide in the industrial real estate sector might not be so much tied to inflation, but rather vacancy rates, according to a new report from Cushman & Wakefield.
The current vacancy rate in comparison to the industrial construction pipeline as of Q2 2022 showed that there was almost 700 million square feet (msf) of space under construction with just under 26% of that space pre-leased, "leaving well over 500 msf of product currently without tenant commitments to be delivered over the next couple of years," according to the report.
Cushman & Wakefield said that based on preleasing rates, "even if all speculative products were to hit the market immediately as vacant, the national vacancy rate would only tick up by 320 bps to 6.3%."
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