Warehouse Market Finds Its Balance as Construction Cools and Demand Rebounds

The U.S. warehouse market is showing early signs of balance after several years of volatility between supply and demand. The national industrial vacancy rate held at 7.1% in the third quarter, matching the previous quarter and marking the first time in three years that availability did not rise. Net absorption, a measure of occupied space growth, increased to 45.1 million square feet—up 30% from the prior quarter—indicating that tenants are beginning to fill available space even as developers scale back new projects...   ...more

RSK: With spec construction down and materials costs up, equilibrium has been found.