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US Industrial Vacancies Rose in Q2

LOS ANGELES-Diminished consumer spending, continued restructuring of the auto industry and new completions boosted the national industrial availability 50 basis points in Q2.

By John McCloud | Updated on August 07, 2008

LOS ANGELES-Diminished consumer spending, continued restructuring of the auto industry and new completions boosted the national industrial availability 50 basis points in Q2, according to the latest report from CB Richard Ellis. At the same time, notes the National Association of Realtors, demand for light manufacturing space actually rose slightly during the quarter as the drop in the value of the dollar has begun to stimulate this formerly ailing sector of the economy.

CB pegs current availabilities at 11%, compared to 10.5% in Q1. The category includes not only existing vacancies but also space slated to be vacated or come on line during the subsequent quarter. The brokerage says most of the increase was in the West and Midwest, which registered jumps of 80 basis points and 60 basis points, respectively.

At the metropolitan level, the largest increases occurred in Stamford, CT and Jacksonville, FL. Of the 10 largest markets, Los Angeles had the largest boost in availabilities, primarily due to new construction in the Inland Empire. The brokerage, which reports construction rose from 25.5 million sf in Q1 to 39.7 million sf in Q2, expects the national availability rate will continue to trend upwards for the next nine to 12 months due to the relative softness in the economy.

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