Colliers International

Q2 2017 U.S. Industrial Market Outlook Report

by CoyDavidson on August 30, 2017

Tight Vacancies Lead to Robust Development

Our Q2 2017 U.S. Industrial Market Outlook Report highlights that demand from e-commerce and third-party logistics users is driving industrial absorption and keeping the overall vacancy rate at an all-time-record low. Development remains strong in core industrial markets and appears set to pick up pace with 216 million square feet currently under construction — the second-highest amount on record.

Looking forward, industrial fundamentals are expected to stay strong with low vacancies, higher rents and robust activity for the second half of the year.

Key takeaways from this report include:

  • U.S. e-commerce sales grew 16% in Q2 2017 compared with the same time last year and now represent 9% of total retail sales. E-commerce will continue to be a driving force for industrial real estate in 2017.
  • The national industrial vacancy rate remained at just 5.4% for the second consecutive quarter — the lowest rate on record despite 109 million square feet of new supply completing in the first half of 2017.
  • Tightening markets and new, higher-quality Class A industrial space drove up asking rents to $6.15 per square foot per year in Q2 2017, 9.5% higher than the same time last year. The increased amounts of newer Class A product hitting the market will likely keep rents at record highs in the coming quarters.
  • While fundamentals for big-box facilities (those larger than 200,000 square feet) remain strong, many occupiers are shifting toward “lean distribution,” which is creating significant demand for industrial product between 50,000 square feet and 200,000 square feet in many markets.
  • Investor demand for industrial properties is growing, making industrial the only major real estate sector to post year-over-year sales growth in Q2 2017. More than $30.1 billion in industrial assets were purchased in the first half of 2017, 10% higher than in the first half of 2016.

▸ Click here to download the complete report as a PDF.

You might also like:

Get my posts via e-mail: here


Colliers Houston Family Relief Fund

August 30, 2017

We are promoting this GoFundMe to help the at least 21 of our Colliers Houston employees who had their homes and cars flooded out. If we have any money left over, we will send it to a local charity. This money will go first to our people directly. Not tax deductible since we are not […]

Read the full article →

Q2 2017 U.S. Office Market Outlook Report

August 23, 2017

Steady as She Goes: U.S. Office Market Remains on Solid Ground Despite the fact that the U.S. office market is cooling, the market overall is solid and stable with occupancy at peak levels and record rents in several markets. Our Q2 2017 U.S. Office Market Outlook Report reveals that investors remain committed to the office […]

Read the full article →

Houston Retail Market Report | Q2 2017

August 7, 2017

Houston’s retail market continues to expand following increased population, jobs and housing growth in suburbs Houston’s retail market has remained healthy through mid-year 2017, with low vacancy, steady leasing activity and positive absorption. Despite 1.5M SF of new construction deliveries in Q2 2017, the average vacancy rate remained unchanged from last quarter, at 5.6%. Almost […]

Read the full article →

Texas Office Market Update | Q2 2017

August 5, 2017

The State of the Texas Office Market Mid-Year Office Market Reports for Austin, Dallas-Fort Worth and Houston. Austin Austin’s Office Market Continues to Deliver As We Hit the Midyear Mark In the second quarter of 2017, Austin’s office market saw 599,982 SF of positive net absorption. This sets the year-to-date absorption at 551,119 SF of […]

Read the full article →

Sometimes Bigger is Better

July 29, 2017

Boutique CRE Brokerage Firms vs. Large Firms I came across this article in Commercial Observer a New York City based commercial real estate publication titled; “The 6 Best Things About Being a Boutique Broker”. The premise of the article is the advantages of working with a small boutique commercial brokerage firm versus a larger national/global […]

Read the full article →

Retail in the Healthcare Setting

July 19, 2017

Retail Dimensions of Health Care Part II In our two-part Retail Dimensions of Health Care Report, we explore the ways health care facilities are approaching location in retail and community settings, as well as the ways retailers are leasing space in hospitals and other medical properties. In Part I, we examine the factors driving the […]

Read the full article →