Savills Q1 2023 State of the U.S. Industrial Market reports that industrial demand is cooling after a record run against the backdrop of an uncertain global economy and balanced market conditions are returning as 2023 advances.
Tenants are taking less space - in Q1 2023, the net absorption totaled 97.8 million square feet (msf). This marked the lowest amount recorded in 10 quarters. Meanwhile, sublease availability is rising with more than 80.3 msf is now on the market for sublease, up from 65.1 msf in Q3 and the highest amount seen in two years. Construction activity is slowing as starts are down 38% year over year as a higher interest rate environment pumps the brakes on new development.
Download our complete Q1 2023 State of the U.S. Industrial Market below for more insights and our outlook for the remainder of 2023.