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
Republic Airways Holdings Plans Tuskegee, Alabama, Training Operations
04/18/2024
South Africa-Based Radel Plans Winston-Salem, North Carolina, Operations
04/18/2024
Firestone Industrial Products Expands Dyersburg, Tennessee, Operations
04/18/2024
Samsung Electronics Expands Taylor, Texas, Chip-Manufacturing Operations
04/18/2024
OMCO Solar Plans Huntsville, Alabama, Production Operations
04/18/2024
Martco-RoyOMartin Upgrades Allen Parish, Louisiana, Operations
04/18/2024
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