United States Industrial Outlook | Q3 2021
The industrial real estate sector continues to break records going into the tail end of 2021
With industrial fundamentals boasting strong quarter-end totals, the silos is well positioned for a record-breaking 2021. As a global economy with substantial reliance on goods being manufactured abroad, and shipping them to distant places, pressure on critical supply hubs this quarter made the supply chain a hot topic. Industries that are reliant on getting goods from critical supply chain nodes, like the ports, saw a spike in demand and are expected to continue to see an increase with the holiday season right around the corner. Demand continues to outpace supply with the lack of available space contributing to rents being driven up and vacancy hitting record lows. As the economy pushed forward and tenants took occupancy of their industrial space, net absorption soared in Q3 and is expected to hit an all-time high by the end of the year.
Market performance categories
Leasing: Over 137.9 million s.f. of industrial product was leased in Q3, a new high for 2021.
Rental Rates: U.S. industrial rents increased this quarter to $6.76 p.s.f. Since Q3 2020, rents have increased 7.1%.
Net Absorption: Net absorption was the highest on record with over 135.1 million s.f. absorbed
Vacancy: The industrial market hit a new record low vacancy at 4.3%
Under Construction: The market delivered 85 million s.f. of industrial space in Q3, 69.6% was already preleased