While steel, plywood and other building materials are skyrocketing, industrial development continues to remain strong, currently exceeding 300 million square feet nationally, according to a new report by Avison Young. In addition, developers completed nearly 280 million square feet of new deliveries in the US in 2020.
Dallas-Fort Worth, the Inland Empire, Chicago, Atlanta and Houston had the most industrial space under construction in Q1 2021.
Dallas-Fort Worth had 28.1 MSF under construction at Q1 2021, making it the top market. In 2020, it had a record-setting 31.5 MSF completed, with more than 6.2 MSF completed each quarter since Q1 2020. In addition, more than 26.9 MSF were under construction each of the last five quarters. Even with the massive building spree, vacancies have remained flat due to a combination of demand for speculative projects and a few significant build-to-suits that were delivered.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
