With demand muted and speculative construction completions persisting at a healthy rate, the industrial vacancy rate has crossed the 5% threshold after ticking up by 60 basis points to 5.2%, according to Cushman & Wakefield's Q4 industrial report.
The rate has not been this high since Q3 2020, but it remains 120 basis points below the long-term 15-year average of 6.4%.
Jason Price, Head of Logistics & Industrial Research at Cushman & Wakefield, said in prepared remarks that while the new development pipeline has exceeded demand, he is "clearly" seeing signs that construction is slowing in response to market conditions and tempered absorption totals.
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