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Distribution / Warehouse | Industrial/Manufacturing

Industrial Demand to Remain Level as Economy Steadies

by NAOIP on March 17, 2019

According to the NAIOP Industrial Space Demand Forecast, First Quarter 2019 the forecast for net industrial space demand will remain steady in 2019 at approximately 57 million square feet per quarter for 2019.

Dr. Hany Guirguis of Manhattan College and Dr. Joshua Harris of New York University report that industrial demand will be off to a strong start in 2019 with a potential tapering off into 2020 as rising interest rates moderate the economy’s growth rate. At present, the risk of a downturn in the industrial space market appears slim as the nationwide vacancy rate sits at a historically low 7.0 percent. Further, gross and net asking rents are at all-time highs, indicating that the market supply continues to tighten at a steady rate.

“The U.S. industrial real estate markets appear to be healthy and stable, and the industrial asset class is potentially in the best position to weather any downturn that may come in the next several years, thanks to manufacturing’s growth and the continued surge in demand for e-commerce fulfillment facilities,” said Thomas J. Bisacquino, NAIOP president and CEO.

Read Full Report

Topics: Distribution / Warehouse, Industrial/Manufacturing
Industrial, NAOIP

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