The strong demand for industrial is forcing revised expectations.
Writing for NAIOP, Dr. Hany Guirguis and Dr. Michael Seiler have revised their forecast for total net industrial absorption in the second half of 2021 upward to 162.6 million square feet with a quarterly average of 81.3 million square feet. In 2022, they project net absorption to be 334.6 million square feet with a quarterly average of 83.6 million square feet.
Driving this upward revision in 2022 is strong economic growth. Real GDP growth projections have jumped from 5% to 7% in 2021. As the economy reverts to normal growth patterns in the first half of 2023, net absorption in the first half of the year is forecast to fall slightly to 160.5 million square feet, for a quarterly average of 80.2 million square feet.
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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.
