Industrial Vacancy Rates Rise During First Quarter
While the office market skated past the weak spots in the economy during the first quarter, the industrial market appears to be heading for thinning ice, says Robert Bach, senior vice president, Research & Client Services, Grubb&Ellis.
By CleanLink Editorial Staff
While the office market skated past the weak spots in the economy during the first quarter, the industrial market appears to be heading for thinning ice, says Robert Bach, senior vice president, Research & Client Services, Grubb&Ellis.
Net absorption plunged to its lowest level in three years, which was enough to raise the vacancy rate by 10 basis points to 7.8 percent.
This was the first increase in four years, and sluggish manufacturing and homebuilding sectors, which have trimmed demand for space, are a probable cause, according to Bach. This is not expected to be the start of an overbuilding cycle, however. Market fundamentals are likely to remain largely balanced through the year, says Bach.
Robert Bach, Senior Vice President, Research & Client Services, has 30 years of professional experience in real estate market research, consulting and city planning.
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