US Industrial Availability Drops to Notable Low
Warehouses and distribution centers saw the rate decline to 7.8 percent in the second quarter, a low not seen in years, a new CBRE report unveils.
July 14, 2017 | by Barbra Murray | Commercial Property Executive
It may have been only a slight decrease, but it was one nonetheless—and it was a decrease with meaning. According to a new report from commercial real estate services firm CBRE, the average U.S. industrial availability rate dropped 10 basis points to 7.8 percent in the second quarter, marking the lowest level since the first quarter of 2001.
Times are good in the industrial sector. “The industrial market has been the best performing sector over the past few years due to declining availability rates and strong absorption,” Jeff Havsy, CBRE chief economist for the Americas, told Commercial Property Executive.
The lower industrial availability in the second quarter was the result of two factors: strong demand and a weaker supply. Demand was buoyed by the robust economy, namely job growth, high port traffic and a rise in e-commerce activity and manufacturing markers.
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