Industrial vacancies nationwide hit all-time low: report

Rent growth outpaced other commercial sectors for the first time

Los Angeles /
Apr.April 19, 2018 01:00 PM
Warehouse (Credit: Wikimedia Commons)

Industrial vacancy hit an all-time low across the U.S., as rent growth outpaced other commercial real estate sectors.

The vacancy rate hit 7.3 percent last year down from 8.1 percent in 2016, according to a report by online real estate trading platform Ten-X. The firm predicts the industrial market will tighten up slightly more this year on the back of 10 million square feet of net absorption.

The report found 2017 was the first year that industrial rent growth led other sectors, and the sixth straight year that rent growth accelerated, according to Real Estate Weekly.

California metro markets including Los Angeles, San Jose, and San Francisco are all ripe for investment, according to the report, partially because of strong demand from the cloud computing and legalized cannabis industries.

More broadly, the shift toward e-commerce has pushed up demand for warehouse, data centers and distribution space.

Ten-X determined that owners of industrial properties in cities including Dallas, San Antonio, Cleveland, and Baltimore should look to sell because of high supply and weak fundamental growth drivers.

Looming tariffs proposed by President Trump could negatively impact the industrial sector, according to Real Estate Weekly. Trump’s proposed tariffs on foreign steel and aluminum have already had an impact on the construction industry, which relies heavily on the former.  [Real Estate Weekly] — Dennis Lynch 


Related Articles

arrow_forward_ios
City Tower at 333 City Boulevard West (KBS Capital Markets Group)
Opal Holdings pays $150M for Orange County office tower
Opal Holdings pays $150M for Orange County office tower
Redcar Properties CEO Jim Jacobsen with Dynasty Center (Google Maps, Industry Partners)
Redcar buys Dynasty shopping center in Chinatown
Redcar buys Dynasty shopping center in Chinatown
Sandstone Properties CEO Eri Kroh with a rendering of the project (Sandstone, The Jeff Hotel)
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Apple delays return to office by a month
Apple delays return to office by a month
Apple delays return to office by a month
Stos Partners Principal CJ Stos and 159 N San Antonio Avenue 
Stos Partners pays $22M for Pomona warehouse
Stos Partners pays $22M for Pomona warehouse
The assistance is available to theaters with fewer than 99 seats (Getty)
California lawmakers set aside $50M in massive state budget to aid small theaters
California lawmakers set aside $50M in massive state budget to aid small theaters
Elon Musk and 19640 Cajon Boulevard (Alere Property Group, Getty)
Tesla drives into San Bernardino with big warehouse deal
Tesla drives into San Bernardino with big warehouse deal
Goodman Group CEO Gregory Goodman with renderings of the facility (Goodman, Relativity Space)
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
arrow_forward_ios

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

Loading...