Industrial vacancies nationwide hit all-time low: report

Rent growth outpaced other commercial sectors for the first time

TRD 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
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
First District Supervisor Hilda Solis (Credit: Rebecca Sapp/Getty Images)

LA County select reopening target date for restaurants and retailers

LA County select reopening target date for restaurants and retailers
The building at 8201 Woodley Avenue and Blackstone CEO Stephen Schwarzman (Credit: Google Maps)

Blackstone pays $83M for pair of industrial properties in Van Nuys

Blackstone pays $83M for pair of industrial properties in Van Nuys
Eric Garcetti orders a moratorium on LA commercial evictions (Photo credit: iStock photo)

Garcetti orders a moratorium on commercial evictions in LA

Garcetti orders a moratorium on commercial evictions in LA
LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!
From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Rexford Industrial adds to LA portfolio with $100M in acquisitions
Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more
arrow_forward_ios

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

Loading...