U.S. Industrial Leasing Plunges In Q1 As `Recalibration` Continues

Industrial users in the U.S. slammed the brakes on leasing in the first quarter, deepening a slowdown that is likely to continue for the remainder of the year.

Net absorption reached 28M SF nationwide in Q1, a roughly 70% drop from a year earlier, driving the vacancy rate up to 6.7% from 4.5% last year. But industrial brokers aren’t worried. In fact, they realize their position could be viewed as enviable.

“A breather, a recalibration period, a soft landing — any or all of the above terms are appropriate,” Newmark National Industrial Research Managing Director Lisa DeNight said. “In the first quarter, we had around 28M SF of net absorption across the country. The office market would love to see that.”
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RSK: But even Industrial/Warehouse has some cracks in it`s walls.