Commercial

High Pricing, Limited Construction Luring Industrial Portfolio Sellers Back Into Sales Market

Almost any way you look at it, from rising rents and e-commerce-related leasing demand, to strong investment sales and pricing, 2017 is shaping up as possibly the strongest year on record for U.S. industrial real estate.

“It’s really hard to find anything negative to say about the current market,” said Rene Circ, director of U.S. research, industrial at CoStar Portfolio Strategy, who co-presented the 2017 Q3 State of the U.S. Industrial Market with senior managing consultant Shaw Lupton.

Net absorption of logistics space rose 3.3% in the third quarter from a year ago while the U.S. vacancy rate for industrial space reached another historical low of 6.5%, even as new supply ramped up by more than 3%, and light-industrial buildings ticked down to 3.1%.

Meanwhile, rent growth in both the distribution center and light industrial categories again exceeded an astounding 6% in the third quarter.

Read Article at Costar.com

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