"Unlike other property types, the industrial market is weathering the storm because lenders and developers have done an admirable job maintaining the balance between supply and demand,'' the Grubb & Ellis report adds.
Much of the R&D/flex space, where the higher vacancies are found, is found in the Southeast and Northwest submarkets. ''Despite the R&D/flex woes (in those submarkets), the dynamics between supply and demand appear to be in balance for the market in general,'' Grubb & Ellis notes.
However, it warns that the rise in sublease industrial space is a cause for concern.
''In just three quarters, the amount of sublease space has increased by almost 65% and is now at 2.24 million sf., of which 1.4 million sf of that space is vacant.''
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