Industrial rental rates hit records with vacancy near record lows the first quarter of 2020
April 29, 2020
The fourth quarter saw the U.S. industrial market closing out 2019 on a positive note. Industrial markets finished the year strong with declines in vacancy and increases in asking rent. Fundamentals continue to perform well - in line with historical trends and show no tangible signs of a slowdown in tenant demand.
Vacancy remains steady with rents climbing 8.8% year-over-year
Industrial vacancy for the U.S. had a slight uptick by 10 basis points quarter-over-quarter reporting at 5.2 percent. While this quarter exhibited a slight elevation in vacancy, it continues to remain near historic lows.
Leading industries in the industrial market
The industrial tenant sectors that dominated the market going into 2020 included e-commerce, Retail and Logistics & Distribution. E-commerce nearly doubled its leasing volume compared to the previous quarter from 10.7 million square feet to 24.9 million square feet.
Completions were up year-over-year with pre-leasing rates at 43.7 percent
Speculative construction this quarter totaled 46.4 million square feet with 27.0 percent preleased, of the total deliveries this quarter, speculative development accounted for 75.6 percent.