By: Walter Bialas
The last few quarters, our region’s industrial market has been on a building boom. With 23 million square feet now under construction, we are well above any average. The obvious warning here is that supply and demand must remain in balance – and record construction must be matched with record absorption.
Last year we did that.
So far this year, our fundamentals remain very strong. As we finished the second quarter, we saw over 10 million square feet of net absorption. That is an amazing pace, especially since we ended 2015 absorbing 18 million square feet.
What is also important is that the demand for space also shows no sign of slowing anytime soon. Vacancy will continue to be tight and rents will continue to increase this year and even next – although we believe there will be a shift to more neutral conditions in 2017 from the very landlord favorable place we are today.