Industrial Market Continues to Flourish in Q3
- Q3 marked the 42nd consecutive quarter of positive net absorption (56.8 million sq. ft), pushing the year-to-date total to 119.9 million sq. ft. This is the 10th consecutive year that net absorption has surpassed the 100 million-sq.-ft. mark.
- An increase in demand for online shopping led consumer goods companies to add more distribution space.
- Strategically located distribution centers are increasingly important for the success of retailers. Availability of such space remains tight, with a relatively low vacancy rate of 4.7%.
- Tight market conditions have caused pricing to continue to increase. Triple-net asking rents averaged $8.09 per sq. ft. in Q3—up 6.4% year-over-year and the highest they’ve been since Q1 2019.
- Developers remain bullish on the future of the industrial market with 312.6 million sq. ft. under construction in Q3, 38% of which is preleased.