Report: Southern US Industrial Markets on the Mend

NEW YORK-Industrial markets along the southern coastline of the United States are showing clear signs of recovery, according to fresh analysis by Cushman & Wakefield. The signs are economic indicators such as industrial production, employment trends, increases in personal income and population growth, which have been rising in sharp contrast to other regions of the country, according to the report, which examined a 33 markets.

“Strong exports of chemicals, textiles, and computers are fueling the South’s rebound,” says C&W’s senior managing director of industrial services Pamela Zoellner. “The defense industry has also had a strong impact on the South. Fifteen percent of the expenditures for defense last year went to contractors and military bases in Southern states.”

Atlanta continues to lead the nation in total square feet leased and sold year-to-date, according to the C&W. Gains in both leasing and sales activity (over 2002 trends) were consistent throughout Florida, particularly in Orlando and West Palm Beach. Top performers on the West Coast were in southern California, where the absorption of industrial space was greatest in Ontario and Orange County. Phoenix, from the Southwest, ranked first nationwide for the market with the most significant increase in industrial leasing activity over the last 12 months.