United States Industrial Outlook - Q4 2020
Industrial fundamentals proved their strength in 2020 with a record-setting year
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 activity jumped 26.9 percent from 2019, with e-commerce being the primary driver of demand.
The U.S. industrial rents increased $0.09 to $6.39 per square foot. Since 2019, rents have increased 4.2 percent.
97.5 million square feet of industrial space was realized this quarter, bringing year-to-date absorption to 273.5 million square feet.
U.S. industrial vacancy was 5.4 percent this quarter. Vacancy fluctuated this year; however, continued to remain below 6 percent.
2020 deliveries totaled 327.2 million square feet, surpassing the prior year by 52.7 million square feet.