U.S. industrial availability dips slightly in Q3
That was fueled by strong demand that again outpaced increasing new supply, according to a new report from CBRE.
U.S. industrial availability registered 7.7 percent in the third quarter, down from 7.8 percent in the second quarter and from 7.9 percent a year earlier.
The decline was the market’s 28th of the past 29 quarters. The only increase came in this year’s first quarter.
CBRE’s preliminary data show third-quarter net absorption of industrial space – a proxy for demand – at 61 million sq. ft.
That’s slightly less than the two-year average. Meanwhile, construction completions of nearly 51 million sq. ft. during the quarter slightly exceeded the two-year average for new supply.
CBRE defines availability as the full amount of space available for lease, including vacant space and currently occupied space being marketed for occupation by other users. The current availability rate is the lowest since 2001.
In the third quarter, 33 of the U.S. markets that CBRE tracks registered declines in their industrial availability rates. Twenty-four registered increases. Eight were unchanged. ■