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.

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