Industrial vacancy rate expected to hit 7.5% nationwide this year

That's well below 20-year average of 10.1%

New York Weekend Edition /
Apr.April 22, 2018 08:00 AM
Most of the national real estate market is expected to perform better this year than previously predicted, according to the Urban Land Institute.

The country’s industrial sector is expected to perform the strongest, with availability rates this year hitting 7.4 percent, according to figures from ULI’s Center for Capital Markets and Real Estate cited in National Mortgage Professional. That’s well below the 20-year average of 10.1 percent.

The industrial vacancy rate is projected to climb to 7.5 percent in 2019 and 7.7 percent in 2020.

On the retail side, the market is expected to pick up, with vacancy rates of 9.8 percent and 9.9 percent in 2018 and 2019, respectively.

“Fundamentals either are steadily improving or appear to have stabilized at sustainable levels,” ULI Leading Member Andrew Warren of the real estate research group at PwC said of the various sectors. “Despite differences in performances between property sectors, there is no indication that we are about to see any imbalance in 2018 that will send any of the sectors into a significant downturn.”

On the residential front, the multifamily sector will hit a vacancy rate 5 percent this year and 5.2 percent in both 2019 and 2020. Home prices are expected to rise an average of 5.3 percent this year.

And the office vacancy rate is expected to remain unchanged this year at 13 percent, and then climb to 13.2 percent next year and 13.4 percent in 2020. [NMP]Rich Bockmann

 

Related Articles

arrow_forward_ios
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
Convene CEO Ryan Simonetti (Convene)

Convene closes Manhattan locations as corporate events fail to return

Convene closes Manhattan locations as corporate events fail to return
New York City District Council of Carpenters’s Monitor Glen McGorty (iStock; LinkedIn)

NYC carpenters union changes how it roots out mob ties

NYC carpenters union changes how it roots out mob ties
The Economic Innovation Group identified 145 real estate investments in Opportunity Zones (iStock)

Real estate deals dominate Opportunity Zones. Is that bad?

Real estate deals dominate Opportunity Zones. Is that bad?
48-00 Grand Avenue in Maspeth and Prologis CEO Hamid Moghadam (Google Maps; Prologis)

Prologis picks up Maspeth parcel for $51M

Prologis picks up Maspeth parcel for $51M
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple snags more space at Vornado’s 11 Penn Plaza

Apple snags more space at Vornado’s 11 Penn Plaza
Amazon's Jeff Bezos, Google's Sundar Pichai and Facebook's Mark Zuckerberg (Getty, iStock)

Tech giants occupy nearly 600M-sf of US real estate

Tech giants occupy nearly 600M-sf of US real estate
Hana Financial Investment’s Lee Jin-Kook and a rendering of 1 St. Marks Place (Hana Financial Investments)

Hana Financial to sell loans tied to Manhattan office, hotel properties

Hana Financial to sell loans tied to Manhattan office, hotel properties
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...