The continued absorption of existing industrial product has really changed the cost structure for industrial projects. Corporations are continuing to see a shortage of available buildings and increasing land and building costs. According to Cushman and Wakefield, Inc.’s U.S. Fourth Quarter MarketBeat, overall industrial vacancy is 5.5 percent due to 63.6 million square feet of net absorption. This is the 27th consecutive quarter of industrial absorption gain; as a result, the construction of 215.6 million square feet of new industrial product is coming to market. The growing demand is raising asking triple net rents to an average $5.64 per square foot, a drastic change from 2012 when asking rents were under $5.00 per square foot and vacancy was over 8 percent.
31st Annual Survey of Corporate Executives Commentary: Economic Incentives Necessary to Mitigate Increasing Project Costs
The lack of available buildings in certain markets, as well as rising rental and labor costs, has made expansions more expensive than ever and heightened the need for economic incentives in order to make projects a reality.
Q1 2017
The continued absorption of existing industrial product has really changed the cost structure for industrial projects. Corporations are continuing to see a shortage of available buildings and increasing land and building costs. According to Cushman and Wakefield, Inc.’s U.S. Fourth Quarter MarketBeat, overall industrial vacancy is 5.5 percent due to 63.6 million square feet of net absorption. This is the 27th consecutive quarter of industrial absorption gain; as a result, the construction of 215.6 million square feet of new industrial product is coming to market. The growing demand is raising asking triple net rents to an average $5.64 per square foot, a drastic change from 2012 when asking rents were under $5.00 per square foot and vacancy was over 8 percent.
Project Announcements
Quantum Fuel Systems Plans Wixom, Michigan, Manufacturing Operations
03/17/2024
The Paslin Company Expands Pontiac-Shelby-Warren, Michigan, Operations
03/17/2024
Schneider Electric Plans-Expands Mt Juliet-Smyrna, Tennessee, Production Operations
03/15/2024
FreezPak Logistics Plans Suffolk, Virginia, Cold Storage Operations
03/15/2024
FrameTec Plans Casa Grande, Arizona, Production Operations
03/15/2024
Ferroglobe Plans Wallace, South Carolina, Production Operations
03/14/2024
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