Industrial Real Estate Succumbs to Sluggish Economy; Market Closes ... - PR Newswire (press release)
BOSTON, Feb. 3 /PRNewswire/ -- Reflecting the troubled U.S. economy and recessionary conditions, the national warehouse market struggled during Q4'08, according to the fourth quarter industrial report from Colliers International, a leading global real estate services firm. Industrial absorption was negative during the October through December period, with occupied space shrinking by 18.1 million square feet (msf). This marked the largest such decline since early 2002.
A confluence of factors - including an increase in delivery of new industrial construction and softened demand for warehouse space - led to a rise in industrial vacancies, which jumped from 8.67 percent at the end of Q3'08 to 9.06 percent at the end of Q4. Compared to one year ago, warehouse vacancies are up from 7.90 percent to the current 9.06 percent. Market polling results indicated 42 markets reported an increase in vacant industrial space, and only 12 markets showed declining vacancy in 2008.