Industrial

As global trade routes reopen, West Coast port markets are seeing significant increases in activity. Naturally, this translates to high occupancy and vacancy rates of below 2%, as well as lease spreads of nearly $2 per square foot. 

Development continues at accelerated pace, working to keep up with growing demand across the country, with some markets tightening to vacancy rates of 3% and even 2%.

U.S. industrial lease rates continued to climb in April while vacancy held steady at 6.1%. Sales activity accelerated, closing out April with $5.1 billion in industrial transactions nationwide.

As U.S. industrial lease rates climbed 4.4% YoY, vacancy held steady in March 2021, and sales activity exceeded $8 billion in first quarter transactions.

U.S. industrial rents grew 5.1% & over 7% Y-o-Y in coast markets. The PPS grew 10% since Q4 2020. Construction will boom in inland markets.

U.S. industrial rents grew 5.1% Y-o-Y in 2020, to $6.44 per sq. ft. in January 2021. By February 2021, 27.8 million sq. ft. of new stock was delivered.

E-commerce fueled demand for industrial space causing rents to grow 4.8% Y-o-Y in December 2020 and sale prices to grow 7.8% over the course of the year. More new industrial space was constructed – 228.4 million square feet – than at any other time this century.