X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-The National Association of Realtors predicts US industrial vacancy rates will rise from 13.5% now to 15.4% percent in Q3 2010. It also projects annual industrial will show a fall of 10.8% this year and another 11.5% next year.

In addition, it says net absorption of industrial space in the 58 markets it tracks is likely to be a negative 298.7 million square feet this year, and a negative 140.5 million square feet next year. With much of the construction in recent years customized for specific industrial needs, there is an overhang of obsolete structures on the market, says NAR chief economist Lawrence Yun.

“There is an opportunity for non-current owners to look at distressed industrial properties in the current market,” he adds. According to Yun, in Q3 the industrial market experienced a slightly higher increase in vacancy rates due to leasing activity well below historic levels and falling prices.

Industrial property owners’ predicament is made worse, he says, by the need to offer higher levels of tenant concessions than office property owners. At the same time, he continues, the fact that the current condition is so negative may mean prospects for improvement in the next three months are better for the industrial market than the office market.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.