United States of America Industrial MarketView Q4 2014
- Leasing demand remains strong with 66 million sq. ft. absorbed in Q4 2014, the second strongest quarter since 2005. Demand was broad-based with core distribution markets and key secondary markets showing significant growth.
- With 34.7 million sq. ft. delivered in the quarter and 117.2 million sq. ft., in the year, the development market has returned, though at a significantly slower pace than historical norms. The development pipeline is robust with over
- 140 million sq. ft. currently under construction across the U.S.
- Demand has outpaced supply by nearly two to one which has pushed rents up sharply—4.8% in 2014—the strongest single year since 2006.
- The U.S. economy expanded in Q4 2014, growing 2.6% amid increased hiring and lower fuel costs, both of which spur consumer consumption which was up 4.3% in the quarter.
- Capital markets metrics reflect a competitive investment environment and optimism within the market.