The US economy entered the beginning stages of recovery in the third quarter with improved GDP and a rebound in retail spending. The industrial market is playing a key role in that overall economic growth. Thanks in large part to the growth online shopping, retail sales increased 1.9% in September, according to a new report from Colliers International.

Several research outlets have estimated the positive impact increased online shopping would have on the industrial warehouse and distribution market, but data from the third quarter made it clear. The US industrial market had 165 million square feet of positive absorption and a national vacancy rate of 5.6%—up only a nominal .6% from the third quarter 2019—despite strong new construction activity and new supply deliveries.

The positive absorption activity was spread across 58 markets nationally, but the Inland Empire, Dallas, Atlanta, Chicago, Houston and Columbus were the top markets for occupancy gains, according to the Colliers report. Each of these markets had 8 million square feet or more of positive absorption.