U.S. USER SALES & LEASING ACTIVITY
- The U.S. industrial market continued to show an upturn in many key market fundamentals and has resumed growth at pre-recession levels. During the height of the financial crisis, lending virtually ceased. Consequently, user sales totaled a mere 46.01 msf during 2009. At the same time, only 230.8 msf were leased, down 29% from the 326.2 msf leased in 2007.
- With financial institutions more confident in the economy, low interest rates available and companies with cash on hand to purchase buildings, user sales improved dramatically starting in 2010. User sales averaged 71.6 msf per year from 2001-2012. There were 76.9 msf of user sales completed during 2012. Through mid-year 2013, 38.7 msf were sold at an annual pace of 77.4 msf. Leasing activity has averaged 296.0 msf since 2001. During 2012, 309.4 msf were leased and the mid-year total of 157.2 sf is on pace to surpass 2012’s total. The peak year for leasing activity was 2005 with 354.5 msf leased.
- The percentage of user sales to the combined total of user sales and leasing activity gives you an analysis of strength of the market. The average percentage of user sales to leasing and user sales activity since 2001 was 19.4%. During 2009, the percentage was 16.6%, which shows financial institutions were not lending and users were not purchasing buildings at normal levels. During 2012 and 2013, the percentage was 19.9% and 19.8%, respectively. The peak year was 2004 with a 22.9%.