US Industrial Space Declines for 31st Consecutive Quarter
The amount of industrial space in the United States declined for the 31st straight quarter in the first three months of 2018, according to CBRE Group.
The commercial real estate firm found demand continues to rise for space in warehouses, distribution centers and industrial facilities, especially by firms in the e-commerce sector.
There was demand for 42 million square feet of industrial space in the quarter, but only 3.5 million square feet of new space construction was completed in that time. CBRE tracks all space available for occupancy by new tenants, including vacant space and occupied space being marketed for use by new users.
“Underlying economic conditions for the industrial sector remain intact, with demand still robust and the supply pipeline strong,” said Timothy Savage, senior managing economist at CBRE Econometrics Advisors.
Availability of industrial space declined in 31 markets in the quarter, increased in 25 others and was unchanged in eight. Dayton, Ohio, Sacramento, Calif., and Tucson, Ariz., saw the largest declines in occupancy. Cities with a rise in occupancy include Wilmington, Del., Louisville, Ky., and Austin, Texas.
