The U.S. industrial vacancy rate declined for the 22nd consecutive quarter to 6.3%, 10 basis points (bps) lower than the previous quarter and 70 bps lower than this time last year. This is the lowest vacancy rate in over a decade.
Occupier demand continues to outpace new supply. Over 63.8 million square feet (MSF) absorbed in Q1, on par with the previous quarter and an impressive 9.6% higher than this time last year.
New supply from construction completions increased in Q1 to 60.1 MSF, the most for a quarter on record. New supply represents 0.40% of the total existing inventory, the highest since Q4 2007’s record setting 0.47% of inventory. Developer’s confidence continues to increase as 60.7% of new supply was speculative.
Source : Colliers International