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.”
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