Industrial Research: Fact of the Week

INDUSTRIAL MARKET ACTIVITY

03.05.13 _ Industrial Market activity

KEY FACTS:

  • From the lows set during the recession in 2009, industrial activity across all markets surveyed by C&W show that owners, users and tenants have returned to the market and at levels not seen since the peak of the last cycle.
  • The 191.5 million square feet of investment sales activity was more than three times the activity in 2009 and just 12.4% below the highest level in the past decade (2007).
  • User sales activity of 76.9 msf was the highest since 2004 and 2005 and 67.1% greater than the low of 46.0 msf recorded in 2009.
  • With overall weighted asking rates at 17.0% below peak levels, but 4.2% higher than the most recent low, investors are snatching up assets looking to take advantage of rising rental rates.
  • The overall U.S. industrial market has seen a 10% three-year average growth in leasing activity since 2009 which has boosted rental rates in most markets surveyed by C&W.
  • With rising rental rates and construction levels that are 62% below the 18-year average, owner/users took advantage of attractive offering prices to lock down facilities before newer, more expensive buildings are delivered to the market.
  • Chicago and Greater Los Angeles were the two most active markets in terms of user sales, accounting for nearly 30% of the total user activity in 2012.

Source:  Cushman & Wakefield Research. Only markets tracked by Cushman & Wakefield offices are included in this analysis.

About Cushman & Wakefield/NorthMarq

​Cushman & Wakefield/NorthMarq is a joint venture formed in September 2011 by NorthMarq Real Estate Services and the Minnesota operations of global real estate services firm Cushman & Wakefield. By combining the talent of both organizations at the regional level with the global platform of Cushman & Wakefield, we offer clients the best combination of regional strength and global capabilities. The result: the leading commercial real estate firm by all measures in the Upper Midwest.
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One Response to Industrial Research: Fact of the Week

  1. Pingback: Industrial News from the C&W/NorthMarq Compass | Twin Cities Industrial Team

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