Amid the ever-increasing demand for shorter delivery times, developers are rushing to deliver new warehouse and distribution facilities, according to Moody's Analytics
In 2020, completions finished at a record high, just over 171 million square feet. However, activity fell from 16.2 million square feet in the first quarter to 8.6 million square feet completed in the second quarter. Still, Moody's expects a "healthy" number of completions in 2021.
Even though completions fell off, new leases and new absorption continued to rise. The second quarter ended with net absorption at 53.6 million square feet. That number is both an increase of about 20 million square feet from the previous quarter and the highest level since the first quarter of 2019.
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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.
