First year base rents on industrial leases exceeding one year have been on a hot streak in 2021, with increases of 9.7% year-over-year so far. And in a fascinating twist, taking rents have eclipsed asking rents for industrial space exceeding 100,000 square feet, with bulk warehouses leading the charge.
CBRE's James Breeze predicts that as industrial vacancy continues at near-record lows, taking rent growth will continue to push past asking rents at least in the short term.
"Consequently, taking rents will remain a better gauge of the market's strength than more traditional metrics," Breeze says.
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