According to Bob Bach, national director, market analysis, Northbrook, IL-based Grubb & Ellis Co., industrial market fundamentals tightened for the third consecutive quarter. The vacancy rate ended the fourth quarter at 9.4 percent, down by 10 basis points from the third quarter and by 40 basis points from 2003-Q4. Demand surged in 2004 to its highest level since 2000, but construction activity surged along with it, which has delayed absorption of second generation space and restrained the vacancy rate from a steeper drop. Look for the market recovery to continue at a moderate pace during 2005.
This information was provided by Grubb & Ellis Co. (www.grubb-ellis.com).