The U.S. industrial market continues to show no signs of a slowdown, with U.S. industrial markets absorbing 52 million square feet during the second quarter of this year, according to the latest research from Cushman & Wakefield.
For the first half of the year, the U.S. industrial market has absorbed a tota of 88.6 million square feet.
This type of absorption is not unusual as of late. Cushman & Wakefield reported that during the country’s current economic expansion, quarterly net industrial absorption has averaged 48.8 million square feet.
Absorption levels aren’t the only strong point of the industrial market. Cushman & Wakefield reported that new leasing activity for the second quarter totaled 132.7 million square feet, a figure that is nearly identical to the leasing activity from a year ago. More than 54 percent of industrial markets across the United States report that industrial leasing activity increased on a quarter-over-quarter basis.
With demand for industrial space high, it’s little surprise that the average asking rents for all industrial product reached a new nominal high in the second quarter of $6.47 a square foot. Construction starts also increased, jumping 20.3 percent on a year-over-year basis, with 36 U.S. markets reporting an increase in industrial building activity.
Finally, the industrial vacancy rate across the country stood at 4.9 percent as of the end of the second quarter. That is 90 basis points below the five-year historical average of 5.8 percent for all industrial types.