Figures

Supply Catching Up with Demand But Available Space Remains Tight

U.S. Industrial | Q3 2022

October 27, 2022 2 Minute Read

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Executive Summary

  • U.S. industrial market fundamentals remained solid in Q3, with record-high asking rents and limited availability.
  • Companies continued to expand their warehouse footprint given strong e-commerce sales, supply chain diversification, inventory control and population shifts.
  • Construction completions totaled 121.4 million sq. ft. in Q3—the second highest quarterly total on record. Year-to-date construction completions were up by 31.5% compared with the same period last year.
  • Net absorption fell by 23% from Q2 to 104.4 million sq. ft., while the overall vacancy rate was unchanged at 2.9%.
  • The average asking rent rose to a record-high $9.54 per sq. ft., up by 4.6% from Q2 and 12.8% higher than a year ago. Taking rents were up 7.6% quarter-over-quarter and 18.9% year-over-year.
  • Despite an economic slowdown, continued strong demand from large occupiers is expected to keep supply and demand in balance.