Regional Industrial Market | Overview

Key Trends

  • Regional vacancy rate decreased to 5.9% during the last two quarters of 2018.
  • Year-to-date absorption topped 15.3 million square feet, but was below the annual totals for 2016 and 2017.
  • Asking rents increased by 3.1% year over year.
  • Construction deliveries were also behind the pace of the last two years, but still at a robust level of 16.7 million square feet.
  • User and investor sales volume was down by 33% from 2017. Limited supply of buildings to purchase pushed user sales down by 50%.

The regional industrial market remained strong during 2018, but did not match the impressive results from the previous two years.