US industrial market strengthening

The industrial real estate market is showing some welcome improvement, according to Cushman & Wakefield’s midyear report, released today. Leasing activity nationwide is up 25.8 percent compared to the same time period a year earlier, the report shows. The vacancy rate dropped .2 percent in the second quarter, down from 10.8 percent in the first quarter of the year, marking the first decline seen in 11 consecutive quarters. Also buoying confidence in the market is the relative slow rate of new inventory hitting the market so far this year, the report shows, with just 8.2 million square feet of construction completions in the first half of 2010, down 80.9 percent from the first half of 2009. Jim Dieter, an executive vice president with Cushman, said that the relatively low rate of construction will likely aid in the market’s stabilization in the coming months. “With construction levels at historical lows, we expect the U.S. industrial market to continue to strengthen through the remainder of 2010,” Dieter said. TRD