CHICAGO—Demand for new industrial product in the US has stayed well ahead of the amount delivered, further brightening prospects for the growing number of investors hunting for deals in the sector. That's according to the latest market report by Avison Young's Chicago-based industrial capital markets group. The demand has remained robust even as speculative construction of warehouse, distribution and flex space has accelerated in many markets. At the third-quarter mark of 2015 US developers had delivered projects totaling more than 147 million square feet of space, a 40% increase from one year ago, and a 240% increase from just three years ago.

Furthermore, researchers continue to find record and near-record low vacancy rates in many markets, increasing the desire among investors to include industrial properties in their portfolios, especially large distribution and warehouse spaces. Investment sales have been quite strong, totaling $2.6 billion in the first three quarters of 2015, and have already surpassed the totals of $2.4 billion for 2014 and $1.8 billion for 2013. The 2015 figure is roughly double the volume seen in 2012 and 2011.

"Tenant demand is the main driver of speculative construction, but the fact that developers know they have an exit is also important," Erik Foster, a principal and practice leader at Avison, tells GlobeSt.com, as it boosts confidence that they will make money and have more equity for the next project.