Industrial Lease Spreads Are on the Rise

Demand is strong but there is some upward pressure on vacancy rates.

With the ups and downs of various product types — those of you on the outs know who you are — there’s been some strong activity on the part of industrial, according to an analysis of Yardi data by CommercialEdge.

The demand for space has pushed up spreads between existing and new leases. Out of the 63 markets that Yardi covers, 44 have a lease spread greater than 10%; in January, 16 had spreads wider than 20%.

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Erik Sherman

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