KANSAS CITY—Ever since Ford and GM decided to double down on their commitments to this metro region, the industrial real estate market has shown tremendous strength. In the third quarter companies absorbed space at a pace not seen in years, and the vacancy rates continued to fall, according to a new study published by Cassidy Turley.
The data show that the industrial market's net absorption was 1.83-million-square-feet. The last time it exceeded 1.5-million-square-feet was in the third quarter of 2008, when tenants absorbed 2.36-million-square-feet of space. And the strong demand has caught the attention of developers.
“So far this year, a total of 3.01-million-square-feet of bulk and modern space has been added to the industrial market, and 77% of that has been speculative,” said Michael Mayer, managing principal in Cassidy Turley's Kansas City office. “By the end of the third quarter, 84% of that newly constructed space already had been leased or sold.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
