Industrial Absorption to Stay Positive, but for How Long?

Amid the current slowdown, occupiers are adjusting their operational strategies, resulting in a measured deceleration of industrial absorption at a national level.

However, this cautious moderation won’t drag absorption in the red, though admittedly it’s not slated to be far off. Absorption is on track to reach 2.8 million square feet nationally during the second half of 2025, according to the latest NAIOP Industrial Space Demand Forecast, albeit the last quarter is set to compensate for the sluggishness of summer and early fall.

The NAIOP forecast model bakes in variables such as lagged net absorption, real GDP growth, inflation and output gaps, monetary policy, as well as seasonal and structural effects...

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RSK: Although industrial leasing has subsided some, it is still going steady. Reason? New spec construction has slowed.