Increasingly tight supply and healthy demand from supply-chain and distribution users have helped drive strong rent growth across most of the nation’s industrial markets.

  • The U.S. economy is nearly back to full health heading into the eighth year of recovery from the Great Recession.
  • After a strong start to the year, demand fell during Q4 2016, with positive net absorption of 47.0 million sq. ft. down 41% from the previous quarter and 36% from Q4 2015.
  • For the 26th consecutive quarter, supply did not keep up with demand, although the gap between the two was the tightest since 2010.
  • With new construction failing to keep pace with demand, the industrial market overall has seen availability fall for 26 consecutive quarters to 8.2% in Q4.
  • Increasingly tight supply and healthy demand from supply-chain and distribution users have helped drive strong rent growth across most of the nation’s industrial markets.