By Kevin Thorpe, Chief Economist, Americas
Contributing components to the industrial market, such as housing and vehicle sales, have also proved to be promising in the second quarter. Year-to-date new home sales are up 23.4% and vehicle sales hit 8.6 million so far this year, compared to 8.2 million during the same time last year.
Some of the latest trends and findings in the industrial sector include:
- Net absorption registered 46.1 million square feet (msf), bringing the midyear total to 86.5 msf – a 22% increase compared to a year ago.
- The industrial vacancy rate is at a cyclical low of 7.3% and 10 of the 60 markets tracked boasted a vacancy rate below 5%.
- Space under construction surged to more than 122.3 msf from 107.3 msf in the first quarter of this year. The volume of deliveries has reached 72.8 msf, which is one and a half times more than the 47 msf delivered in the first half of 2014.
Be sure to read our full Q2 U.S. Industrial Trends Report and watch the video below for an overview.
As Chief Economist, Kevin is responsible for overseeing the Research Department in our major regional offices as well as focusing on national commercial real estate trends and forecasts. Kevin’s group produces studies and statistics on topics affecting the national and local economy, capital markets, finance, leasing fundamentals, property and project management and factors that affect supply-demand fundamentals in commercial real estate. Kevin has developed several econometric models to predict market trends, has authored numerous studies and survey reports and was the 2014 recipient of the National Association for Business Economics’ (NABE) Outlook Award.