The far northwest, home to 68 million sf of the region's 362.4 million sf, racked up the win with leases to Igloo Products Corp., 187,000 sf; Southern Worldwide Logistics, 256,435 sf; and Inventec USA Corp., 75,000 sf. The end result is the submarket, which has a 10.8% vacancy in its 68-million-sf inventory, is ahead of the game with a 411,965-sf absorption for the year.
Robert Kramp, regional client services manager for Grubb & Ellis, tells GlobeSt.com that warehouse/distribution absorption for the quarter and year to date are strong indicators that an economic recovery is at hand. At the Q3 close, the product type logged 1.3 million sf of positive absorption and 2.5 million sf year to date. Research has shown that more goods are rolling into the region for distribution, the first sign of improvement for the economy as a whole, he says.
The dark side of the report is that general industrial product backslid another 552,721 sf. Year-to-date red ink is running 1.5 million sf.
Still, Kramp points out, the industrial markets in the city and Dallas have performed better than the nationwide average. The city's 8.7% vacancy, resting 121 basis points below the national average, stayed relatively level despite another 500,000 sf delivering in the third quarter.
Rents too are holding steady. Warehouse/distribution is getting 32 cents per sf and general industrial product, 24 cents per sf. A two-cent increase for research and development/flex product has the monthly rate sitting at 56 cents per sf, according to the Grubb & Ellis researchers.
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