First Industrial Reports Boost in Occupancy

CHICAGO—First Industrial Realty Trust, Inc., a Chicago-based owner, operator and developer of industrial properties, recently released results for the fourth quarter that show both a boost in occupancy and strong same store NOI growth. Occupancy was 94.3% at the end of the fourth quarter, compared to 93.9% at the end of the third quarter of 2014, and 92.9% at the end of the fourth quarter of 2013, the data show. Same property cash basis net operating income increased 6.2% and rental rates increased 3.1% on a cash basis.

The results are not really a surprise. As the US economy continued to pick up steam in 2014, industrial demand intensified, pushing down vacancy rates and exerting upward pressure on rental rates. And according to experts, 2015 promises more of the same. David Egan, head of industrial research, CBRE Americas, told GlobeSt.com that “developers will be able to comfortably underwrite new development” and kick-start “a really strong renaissance in the industrial market.”