Industrial demand exceeds supply, any way you slice it
Looking at existing vacancies to new spec construction – there isn’t enough space for all tenant demand.
August 17, 2020
- The 2020 U.S. Industrial Demand Study data tallied a total of 543 million square feet of tenant requirements.
- Available options now – comparing demand against existing vacant inventory, the majority of regions in the U.S. don’t have enough existing supply to meet demand.
- 2020 forecasted demand exceeds 2019 leasing activity – across the country, markets are seeing more requirements for space than space being leased. Almost every region’s current tenant demand exceeds last year’s leasing activity. U.S. tenant demand exceeds 2019’s leasing activity by 130 million square feet. This highlights the compression of available space to meet demand.
- Top U.S. industrial markets availabilities – how do tenant requirements compare to available space? On average, only 80 percent of tenant requirements can be met from current availabilities.
- 2020 forecasted demand exceeds availabilities of new spec deliveries – demand outpaces new available supply, pushing tenants toward older availabilities.