M id A tlantic Real Estate Journal — March 27 - April 9, 2020 — 15A
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M id A tlantic R eal E state J ournal
After 26% growth during 2010s, rents still rising in majority of markets Transwestern reports U.S. industrial market sustains 3 billion s/f of occupancy growth over past decade
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nationally, with the larg- est percentage of that total concentrated in Dallas-Fort Worth, California’s Inland Empire, Houston, Chicago, Atlanta and New Jersey. Currently, only the Inland Empire and New Jersey register vacancy below the national average of 5%. Looking ahead, rising con- struction prices, concerns around overbuilding, and the approaching presiden- tial election could begin to curb development in some markets, even as rental rates rise. “While trade war anxieties
have subsided, uncertainty during election years some- times causes deceleration in leasing velocity – although the industrial market ig- nored that tendency during 2016,” Dolly said. “It’s the nature of the industry for oc- cupiers to exhibit more cau- tion when it comes to making major business decisions.” Transwestern Commercial Services (TCS) is a privately held real estate firm of col- laborative entrepreneurs who deliver a higher level of per- sonalized service and innova- tive client solutions. Applying a consultative approach to
Agency Leasing, Asset Servic- es, Occupier Solutions, Capital Markets and Research, our fully integrated global orga- nization adds value for inves- tors, owners and occupiers of all commercial property types. We leverage market insight and operational expertise from across the Transwestern en- terprise, which includes firms specializing in development and real estate investment management. TCS has 34 U.S. offices and assists clients from more than 200 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and
Canada-based Devencore. Experience Extraordinary at transwestern.com and @ Transwestern. ABOUT TRANSWESTERN The Transwestern en- terprise comprises diversi- fied real estate services, investment management and development compa- nies. The privately held, fully integrated organiza- tion leverages competencies in office, industrial, retail, multifamily and healthcare to add value for investors, owners and occupiers of real estate.
OUSTON, TX — Between the first quarter of 2010 and
the fourth quarter of 2019, the U . S . i n - d u s t r i a l market ex- perienced occupancy g a i n s o f more than
Matthew Dolly
3 billion s/f, according to Transwestern’s latest na - tional report on the sector. In the most recent quarter, 58.6 million s/f of absorption contributed to that total. Meanwhile, the U.S. av- erage asking rental rate climbed to $6.38 psf in the fourth quarter, peaking for the third straight year. Five markets, including Las Vegas, Philadelphia, Oklahoma City, Boston and Raleigh-Durham, all posted year-over-year rent growth over 10%. “Positive net absorption for 40 straight quarters is a remarkable trend,” said Matthew Dolly , research director. “U.S. job growth and strong consumer spend- ing continues to drive retail sales, and despite record new deliveries, the construc- tion pipeline remains full. We anticipate rental rates – which, on average, grew by more than 26% during the past decade – will continue to rise throughout the year.” Despite many positive in- fluences on industrial real estate, a shortage of labor has generated some head- winds for the logistics sector. National e-commerce sales logged the highest annual growth in its 20-year exis- tence during 2019, which included a record monthly increase of 6.5% for De- cember. At this pace, more workers will be required in order to keep supply chains moving efficiently. Construction is also an area to watch. New product deliveries in fourth quar- ter 2019 were at the high- est level in six quarters, contributing to a modest rise in average national vacancy. Developers con- tinue to surge ahead with projects that present more infill space constraints and contamination issues than in the past. 450 million s/f of new space is underway
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