Both lease rates and office vacancy saw modest Y-o-Y increases in March 2021, but investors did not shy away from spending record amounts in top office markets.
Industrial space sale prices grew 10% since Q4 2020. In the first two months of 2021, total sales nationwide amounted to $4.7 billion. Over the last 12 months, industrial rents grew 5.1% & by over 7% in port markets. Thus far in 2021, 41.7 million sq. ft. of new stock was delivered.
By February 2021, U.S office vacancies grew 40 bps M-o-M to 15% and 160 bps Y-o-Y. Austin, San Francisco, and Seattle had the greatest increase in vacancies nationwide at 720 bps, 480 bps, and 450 bps, respectively. U.S. office-using employment fell 3.4% Y-o-Y.
High demand for U.S. industrial space meant that those who leased in the past 12 months paid an avg. of $7.50 per sq. ft. – a 5.1% increase Y-o-Y. Record trade activity in the Ports of Los Angeles and Long Beach fueled demand – imports grew 4.8% year-over-year in December 2020. By February 2021, 27.8 million sq. ft. of new stock was delivered.
By January 2021, U.S. office-using employment fell 3.3%. Office vacancies increased 40 basis points to 14.6% and 80 basis points Y-o-Y.
By December 2020, U.S. office vacancies increased 40 basis points to 14.2% and office-using employment fell 3.4%.
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.
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