A 4.1% increase in the nation's overall industrial vacancy rate in Q2 2023 is partly due to the number of speculative new industrial space developments now coming to market, according to an analysis by Cushman & Wakefield.

A return to normal in companies' space requirements after historically high demand in recent years also contributed to the 60 bps increase in vacancies, the report stated.

Overall, the report paints a picture of an industry adjusting to a less frenetic economic environment rather than one under severe pressure. "We are now seeing the impact of the robust pipeline of product coming to market and easing pressure on markets that were at historically low vacancy rates through the pandemic," noted Jason Price, senior research director, U.S. Industrial and Logistics.

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