According to a recent market update released from Bob Bach, national director, market analysis, Northbrook, IL-based Grubb & Ellis Co., the U.S. industrial vacancy fell by 50 basis points to end the first quarter. Bach’s assessments put the vacancy rate at 8.9 percent, marking the largest quarterly decline in nearly 7 years. According to Bach’s report, “Net absorption of 45 million square feet more than doubled the 19 million square feet of new space completed.” However, average rental rates were flat in most markets. Bach predicts a breather is store for absorption rates due to recent softness in the economic drivers of demand for space, including retail sales, durable goods orders, and the ISM manufacturing index.
This information was provided by Grubb & Ellis Co. To find out more, visit (www.grubb-ellis.com).