Despite robust levels of new construction, the supply of quality industrial space continues to thin in markets large and small across the country. Major distribution hubs continue to see the most construction and state-of-the-art distribution facilities account for the lion’s share of the new space being built. Supply in mature, infill markets like Los Angeles and the New York area are running at critically low levels, which is forcing big users to look outside preferred areas in order to expand. The industrial base is actually shrinking in some markets, as older product is being repurposed to so-called higher uses. On the other hand, big hubs with land to spare like Dallas/Fort Worth and Atlanta are experiencing record levels of new construction and absorption, along with strong rent growth. Read more
Sep
12