A blockbuster number of industrial facilities exceeding 1 million square feet are under construction, including a record number of preleased multi-story, automated e-commerce fulfillment centers.
Yet despite this large and growing supply pipeline, "lengthening construction timelines have muted quarterly deliveries and demand has outpaced inventory additions at a sharply increasing pace for four consecutive quarters," a new report from Newmark states, noting that 73 million square feet of space was delivered in the third quarter, 16% below the quarterly average in 2020.
All 49 industrial markets Newmark tracks had projects under construction at the end of the third quarter. In sum, a total of 431.7 million square feet is currently planned, and third-quarter net absorption was nearly double the amount of new supply.
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