CHICAGO—US industrial tenants absorbed 53.8 million square feet of space in the first quarter of 2017, well above the quarterly absorption average of 49.3 million square feet witnessed during the current economic expansion and significantly higher than the average quarterly absorption of 40.6 million square feet registered during the last two economic growth cycles, according to Cushman & Wakefield's first quarter industrial market report.
The national industrial vacancy rate continued to decline, falling 20 bps to 5.3%, a full 300 bps below the 10-year historical average of 8.3%.
“I was pleasantly surprised by the numbers,” Jason Tolliver, head of industrial research, Americas, at C&W, tells GlobeSt.com. The capital markets had seemed to slow down, and although surveys showed strong business and consumer confidence, spending was also a bit slow. “Going into this quarter, I was expecting a slowdown.”
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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.
