MARKET TRENDS
- Vacancy increased by 100 basis points (bps) in the fourth quarter to 7.1%, while net absorption was negative for the sixth consecutive quarter tallying 1.2 million square feet (msf).
- There is 1.9 million square feet (msf) under construction, with no new buildings delivering in Q4. Industrial inventory continues to rise as office buildings are being repurposed to industrial use.
- With market conditions stabilizing and vacancy rates rising, asking rental rates have declined to $1.50 NNN in Q4, reflecting a 1.3% drop from the previous quarter and a 14.8% decrease compared one year ago.