Research

United States Industrial Outlook - Q4 2020

Industrial fundamentals proved their strength in 2020 with a record-setting year

February 04, 2021

Despite the COVID-19 pandemic and nationwide economic uncertainty, industrial leasing activity in the U.S. continued to set new records in 2020. Shifts in online shopping made e-commerce the primary driver of leasing this year with other industries rising to the challenge to meet consumer demand. Tenant touring activity and move-in’s increased toward the second half of the year pushing net absorption past the 250.0 million square foot threshold. With increased demand and a stable supply, leasing fundamentals ended the year on a high note.

Market performance categories:

Leasing:
Leasing activity jumped 26.9 percent from 2019, with e-commerce being the primary driver of demand.

Rental rates:
The U.S. industrial rents increased $0.09 to $6.39 per square foot. Since 2019, rents have increased 4.2 percent.

Net Absorption:
97.5 million square feet of industrial space was realized this quarter, bringing year-to-date absorption to 273.5 million square feet.

Vacancy:
U.S. industrial vacancy was 5.4 percent this quarter. Vacancy fluctuated this year; however, continued to remain below 6 percent.

Under construction:
2020 deliveries totaled 327.2 million square feet, surpassing the prior year by 52.7 million square feet.

 

Q4 2020 Industrial highlights
 
 
Q4 2020 Industrial statistics by market
 


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