INDUSTRIAL INSIGHT

National Logistics Market

The national logistics market totals about 3 billion square feet and represents 25 percent of total industrial space tracked by Grubb & Ellis. Over the past 10 years, logistics has emerged as the institutional industrial space with the lowest cap rates, highest new deliveries and greatest net absorption among all industrial subtypes. Since 2005, this sector accounted for nearly 60 percent of all completions and 55 percent of total demand. Since the recession, logistics’ market share improved. While the national industrial market still has 44 million square feet to absorb before the prior peak of total occupied square feet is reached, logistics is already 52 million square feet in the black. Total market share for new completions also rose, totaling 74 percent over the past four quarters.

Second Quarter Highlights

• Vacancy declined 60 basis points to 11.8 percent

• Demand totaled 18 million square feet, 59 percent of total

• New supply totaled 2.3 million square feet, 68 percent of total

• Rents were up 0.7 percent year-to-date and down just 0.6 percent year-over-year, the lowest annual decline since the beginning of the recession

Source: Grubb & Ellis Research