Report: U.S. industrial property market soared in Q1
The U.S. industrial property segment kept rocking in the
first quarter, as markets absorbed 53. 8 million square feet of
space, above even the quarterly absorption average of 49. 6
million square feet recorded during the current multiyear
expansion, real estate giant Cushman & Wakefield (C&W)
said.
The nationwide vacancy rate fell to 5. 3 percent in the first
quarter, down 80 basis points from the first quarter of 2016.
Vacancy rates are now 300 basis points below the 10-year
historical average of 8. 3 percent, C&W said. Rents rose
in the quarter, on average, by 4. 2 percent compared with
the same period in 2016, with 71 of 79 markets tracked by
C&W showing gains. Rents rose by double-digit amounts in
more than one-third of the country, according to a C&W
report. Rents in many markets are either at all-time highs
or quickly approaching them, C&W said.
Atlanta reported the strongest absorption rate in the
quarter, followed by Dallas/Fort Worth; California’s Inland
Empire east of Los Angeles; Cincinnati; and Chicago.
The tightest markets in terms of vacancy rates were Los
Angeles at 1. 3 percent, followed by Orange County (Calif.),
California’s Oakland/East Bay market, Cincinnati, and
Savannah, Ga.
U.S. industrial demand has been spurred by the growth
of e-commerce, which has led to the development of larger
warehouses and distribution centers. A recent pickup in
the global economy and international trade has provided a
secondary boost. C&W joined the chorus of big developers
expecting another banner year for industrial development.
Nearly 55 million square feet of space were delivered in
the first quarter, mostly in major industrial markets and
primary inland distribution hubs, C&W said. Speculative
development, which was notably absent even as the market
began to turn in 2010 and 2011, continues to pick up steam.
In the first quarter, speculative projects under construction
totaled 145.5 million square feet, making up two-thirds of
the total square footage under construction.
“Construction continues to ramp up nationally, with
U.S. groundbreakings up 24 percent since the fourth
quarter of 2016, but the majority of speculative develop-
ment remains concentrated in primary industrial markets,
as does the most significant notable leasing volume,”
said Jason Tolliver, C&W’s head of industrial research,
Americas, in a press release.
Tolliver said markets should not become oversupplied
during 2017. If they do, it should first be noticed in primary markets where big speculative projects are expected
to come online, he said. Still, “there is no market where
vacancy is poised to skyrocket due to pending deliveries,”
Tolliver added.
TMW Systems has been named Partner of the Year by
Cleo, a provider of B2B integration software and ser-
vices to the trucking industry. … ADSI, a specialist in
order fulfillment, dimensioning, and shipping software
solutions, received top honors as Provider of the Year
at the FedEx Compatible Solutions Provider Summit. …
At the opening ceremony for LogiMat 2017, Swisslog’s
“Condition Monitoring” software plugin was honored
with the Best Product award in the software, commu-
nication, and IT category. … Crown Equipment Corp.
reached a 100-international-industrial-design-awards
milestone when it received Good Design awards for its
SC 6000 Series counterbalance forklift and PTH Work
Assist system from The Chicago Athenaeum: Museum
of Architecture and Design and the European Centre
for Architecture, Art, Design and Urban Studies. … The
Material Handling Equipment Distributors Association
(MHEDA) has awarded Associated and its subsidiary
Peach State Integrated Technologies Most Valuable
Partner status for 2017. In addition, the group has rec-
ognized Toyota Material Handling USA
Inc. with its Most Valuable Supplier
award for 2017. … Yale Materials
Handling Corp. has received a 2016
Good Design award for the MPB045VG
walkie pallet truck with lithium-ion battery. In other Yale news, the company’s MPE080VG end
rider with Driven by Balyo technology was chosen as a
finalist in Plant Engineering magazine’s Product of the
Year competition. … Cenveo has named Averitt Express
its Regional LTL Carrier of the Year. … Hub Group has
chosen Werner Enterprises as Elite Carrier of the Year
from among the company’s 2016 Truckload Carriers of
the Year. … Home Depot has selected Hub Group as its
2016 Intermodal Carrier of the Year. … XPO Logistics
was ranked as the largest logistics company in North
America on Transport Topics’ 2017 list of Top 50 Logistics
Companies. … Kion North America was recognized by
The South Carolina Manufacturers Alliance for outstanding workplace safety accomplishments during 2016.
accolades
YALE
