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