Reis Chief Economist and Senior Vice President Victor Canalog, PhD, provides an analysis of market fundamentals in the industrial property sector for the fourth quarter and year of 2016. Some highlights from this video include:
- Industrial properties continued improvement trends in 2016
- In the warehouse distribution sub-sector:
- Vacancies ended at 10.3% down 20 basis points for the quarter, 30 basis points for the year
- Asking and effective rents both increased .7% in fourth quarter
- Asking rent up 2.1%, effective rent up 2.2% for the year of 2016
- In the indutrial flex and R&D sub-sector:
- Vacancies ending at 11.1%, down 30 basis points for the fourth quarter, 70 basis points for the year of 2016
- Askgin rent increase .5% while effective rent increased 0.6% n the quarter
- During the year of 2016 askind and effective rent increased by about 2.0%
- In general, industrial property continues to benefit from tailwinds in retail, particularly online commerce, and healthy trade
- Expect positive trends to continue in 2017