US Industrial Property Market Continued Deteriorating in Q3 2009
The increase in the industrial property vacancy rate in Q3 2009 was driven primarily by a drop in demand as reflected in a negative net absorption (decrease in occupied stock) of 53.6 million square feet. It should be noted though that the decrease in demand was by 33.2% lower compared to Q2 2009, when the occupied industrial stock decreased by 80.3 million square feet. The increase in the Q3 2009 industrial vacancy rate was also driven by the completion of 14.8 million square feet of new industrial space, which represents a decrease of 8.1% compared to the 16.1 million square feet of industrial space that were completed in Q2 2009. With deteriorating market fundamentals, US industrial property rents continued declining but at a decelerating rate. In particular, according to the NAR/CBRE-EA data, industrial property rents posted a quarterly decline of 1.8% in Q3 2009, following a decline of 2.6% in Q2 2009 and 3.7% in Q1 2009. If you have an interesting comment in relation to this article please use the form below Related Posts to submit it. Please read submission guidelines before writing and submitting your comment.
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