U.S. Industrial Occupancy Posts Largest Annual Growth on Record

Article originally posted on HERE on November 30, 2021

The U.S. industrial market set new records across multiple key performance indicators, according to Transwestern’s third quarter U.S. Industrial Market report. More than 540 million square feet of net absorption was reported over the past four quarters, the first time that occupancy has increased by more than 500 million square feet year-over-year. Q3 saw net absorption of 158.8 million square feet, the largest quarterly growth since 2008.

Asking rents increased to $7.11 per square foot in Q3, with more than one-third of the 44 tracked markets reporting double-digit percentage growth Y-O-Y. It marked the first time the average asking rent for industrial space in the U.S. surpassed $7 per square foot.

“We expect continued elevated net absorption as pre-leased construction projects are delivered to the market,” said Matthew Dolly, research director at Transwestern. “Further, the boost in rents is making redevelopment opportunities more feasible, which will benefit both core and expanding markets such as Savannah, Austin and Pennsylvania’s Lehigh Valley.”