Aug 17, 2017 - 0 Comments - Industrial -

Video: Reis Chief Economist & VP of Research Victor Calanog Presents Q2 2017 Industrial Sector Trends

Reis Chief Economist and Vice President of Research Victor Calanog provides the Reis assessment of Q2 2017 Industrial Sector trends. Highlights include:

  • Industrial fundamentals were on a tear during Q2 2017
  • National vacancies for warehouse distribution sub-sector were 9.7%, down 20 basis points for the quarter and 60 basis points for the year
  • Flex sub-sector vacancies were 10.5%, slightly higher than warehouse distribution centers, having falled 30 basis points in the quarter quarter and 100 basis points – a full percentage point – during the year
  • Asking and effective rents increases .7% and .8%, effectively, during the quarter, for warehouse distribution centers
  • The flex sub-sector rent growth matched this with a .7% increase in asking rents and a .8% increase in effective rents
  • Year over year rent growth rate for both warehouse distribution centers and flex space was in the mid 2s (percent)
  • Developers are rapidly bringing new product to meet the attractive fundamentals
  • Difficult to project with short time to delivery, but anticipate 1 million square feet of warehouse distribution space will be added this year alone
  • New supply not expected to tank fundamentals given strength of demand
  • What ails retail is bolstering the prospects of industrial space, especially warehouse distribution
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