A new report from CBRE indicates that for many industrial users, double-digit rent increases will be the norm. In particular, warehouse occupiers who signed five-year leases in 2016 are now facing rents that are an average of 25% higher as they look to renew or move. The increase is even more pronounced for occupiers with 10-year leases expiring this year: when they signed their deals a decade ago, market conditions favored occupiers. Overall vacancy was 5.1 points higher than it is now (at 8.7%) and asking rents were 67% lower than today, with annual escalations that were much smaller. The above slideshow illustrates just how sharp those increases will be in some of the tightest markets in the US.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
