Occupancy of bulk industrial space for warehouse and distribution purposes fell by almost half in 2023 compared to 2022. However, according to Colliers, that slump was no surprise after two years "of exceptional and unsustainable demand."

Vacancies rose in every region of the country and in almost every market, partly driven by 607 million SF of new development — almost 85% of it built on a speculative basis – and partly by a drop in demand. "In some emerging markets, vacancy increased by several hundred basis points during the year, nearing or eclipsing 10%," the report noted, adding that it may take some time to return to historical norms.

There was a steep drop of 47.6% in new occupancies exceeding 100,000 SF during the year — to just 302 million SF in 2023 compared to 576 million SF in 2022. Far fewer new leases were signed – 1,042 compared to 1,956 the previous year. And the average amount of space leased also declined slightly to 289,000 SF from 294,659 SF.