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
WeWork CEO Sandeep Mathrani (Mathrani/Wikipemedia, Getty)
WeWork says it must correct financial statements
WeWork says it must correct financial statements
601 Madison Ave. and Ben Soleimani (Google Maps, Ben Soleimani)
Ben Soleimani leases 12,000 square feet on Madison Avenue
Ben Soleimani leases 12,000 square feet on Madison Avenue
Rolling Gardens Apartment Homes at 405 Franklin Turnpike in Mahwah NJ (Apartments.com)
Morgan Properties trades NJ multifamily portfolio for $57.5M
Morgan Properties trades NJ multifamily portfolio for $57.5M
645 Madison Avenue (Google Maps)
645 Madison ground lease trades to Titan Golden for $27M
645 Madison ground lease trades to Titan Golden for $27M
Blackstone's Stephen Schwarzman (Getty)
Blackstone buys logistics portfolio for $2.8B
Blackstone buys logistics portfolio for $2.8B
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
 Jeff Sutton of Wharton Properties, 25 West 34th Street in NYC (Google Maps)
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
City law protecting commercial tenants upheld on appeal
City law protecting commercial tenants upheld on appeal
City law protecting commercial tenants upheld on appeal
arrow_forward_ios

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

Loading...