Brennan Sees Industrial Market Bottoming Out

"I think we're probably at the bottom," Brennan says. "I'm not ready to be jubilant yet and say all is perfect."

With an 80-million-sf portfolio, First Industrial is the largest space provider in its sector in the US.

Brennan observes there has been an uptick of leasing activity in the second quarter. "The leasing activity has continued to be fairly strong," Brennan says. "I don't know if it's the submarkets we're in or our leasing efforts."

However, First Industrial's occupancy rate is at 90.8%, down from its historic 95% territory, Brennan reports. "We're working very hard to get the leasing up to the 95% level we've had before," he tells the forum.

Meanwhile, dispositions has been a bright spot, Brennan says. "There is no absence of people willing to buy industrial properties," he adds.

On the flip side, the market is tough on the acquisition side, with opportunities few and far between and costly—First Industrial spends between $100,000 to $200,000 on due diligence before deciding to pursue a deal—when they come up.