SANTA ANA, CA-The US logistics market turned in a strong performance during the first half of this year 32.7 million square feet of absorption, but whether it can continue that pace remains to be seen, according to a new report from locally based Grubb & Ellis Co. The report points out that demand for logistics space was positive in 21 US markets, with vacancies increasing in 10 markets.

The report was authored by Tim Feemster and Rene Circ and is available for download at the Grubb & Ellis web site. Feemster is a Grubb & Ellis SVP and director of global logistics; Circ is a vice president and national director of industrial research. Their report shows that the Inland Empire of Southern California topped all markets with 11.2 million square feet of net absorption, followed by Dallas (4.5 million), Atlanta (4.0 million), Chicago (2.6 million), Northern New Jersey (2.6 million) and Central Pennsylvania (2.2 million). Those top six markets accounted for 85% of the total net absorption.

"Southern California’s logistics market is the largest and most dynamic market in the country," notes the report, which points out that the two largest US ports, Los Angeles and Long Beach, are located right next to each other and in total account for approximately 35% of total container water traffic coming in and out of the country. The report also notes that speculative construction is now under way in the Inland Empire market, which is primarily driven by the ports.