The North American industrial vacancy rate declined by 15 basis points (bps) to 6.7% in Q1 2015. In the U.S., the vacancy rate fell for the 21st straight quarter, down 15 bps to 7.0%. In Canada, the vacancy rate decreased by 10 bps to 3.8%.
Net absorption in North America was strong once again in Q1, totaling 63.1 million square feet (MSF), among the highest levels of quarterly absorption post-recession. U.S. absorption in the quarter was 58.6 MSF, up 21.4% year-over-year.
Healthy occupier demand and the need for modern industrial space led to an upswing in construction in both the U.S. and Canada. 52.0 MSF was added to the industrial base in the first quarter, comprising 49.7 MSF in the U.S. and 2.3 MSF in Canada. In many markets, a growing supply is needed given the rate of expansion in the economy, pent-up industrial demand and tightening market conditions.
Source : Colliers International