Industrial Vacancy to Stay Near Historic Lows


Industrial Vacancy to Stay Near Historic Lows


High demand, low supply and rising rents seen in the second quarter will likely persist through year’s end, according to Prologis.

The U.S. logistics sector continues to thrive, but the high-flying days seen in 2018 gave way to a more sustainable level of activity in the second quarter of 2019, according to Prologis Inc.’s U.S. industrial business indicator, a survey of customer sentiment.

Prologis’ IBI activity index has continued to moderate this year and settled in at 60 in the second quarter, a slight decline from the first quarter figure of 60.4 and a notable drop from the peak seen in the fourth quarter of 2018, which topped out at an unsustainable 67.8. The more modest IBI means the flow of goods through customer facilities is still growing, but at a healthy rather than frenzied pace, Melinda McLaughlin, head of U.S. research with Prologis, said in a video statement on the report. And combined with a utilization rate that held steady in the 85 to 86 percent range, the IBI indicates that demand has returned to normal...

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- - Volume: 7 - WEEK: 32 Date: 8/6/2019 5:43:18 AM -