Despite record demand for industrial space and virtually no vacancies in the tightest US markets, construction completions dropped by 27.8% in Q1 compared to Q4 due to materials and labor shortages, according to CBRE's Q1 industrial report.
CBRE's report, released this week, said the continued tightness in industrial supply—average vacancies were 3.1% in Q1—caused YOY net absorption to decline 10.4% to 93.8M SF, which is still higher than the 10-year average.
The average asking rent for industrial space increased by 3.7% quarter-over-quarter and 18.9% YOY to a record-high $8.94/SF, with no relief in sight, the report said.
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