The long-term operating picture for the industrial sector is bright after it pushes through some short-term challenges.
In the short term, operating fundamentals for industrial have softened, with new supply triggering a pullback in demand, according to an analysis by Al Pontius, national director of office and industrial at Marcus & Millichap. Typically, this causes vacancies to rise and rental rates to flatten to attract new tenants, but reality varies from market to market. A large amount of new supply has been concentrated in high-growth markets, and there also has been a trend toward larger big-box formats of a million square feet or more, said Pontius.
Across the country, industrial vacancy averages about 6%.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.