Despite the COVID-19-induced economic downturn, the industrial market is on solid ground with low vacancy rates, record-high asking rents and positive net absorption.
The pandemic increased e-commerce’s share of total retail sales, thereby increasing the demand for warehouse and distribution space. Overall industrial net absorption of 19.2 million sq. ft. in Q2 pushed the year-to-date total to 54.2 million sq. ft.
Industrial demand is highest for warehouse and distribution space, year-to-date net absorption of which totals nearly 70 million sq. ft. (more than the industrial sector’s overall gain because of negative absorption in other categories like manufacturing).