With demand muted and speculative construction completions persisting at a healthy rate, the industrial vacancy rate has crossed the 5% threshold after ticking up by 60 basis points to 5.2%, according to Cushman & Wakefield's Q4 industrial report.
The rate has not been this high since Q3 2020, but it remains 120 basis points below the long-term 15-year average of 6.4%.
Jason Price, Head of Logistics & Industrial Research at Cushman & Wakefield, said in prepared remarks that while the new development pipeline has exceeded demand, he is "clearly" seeing signs that construction is slowing in response to market conditions and tempered absorption totals.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
