Industrial Sector Faces Intense Pressure for Space: Report

Originally published by Patricia Kirk on December 1, 2021 for

Through most of the pandemic, the U.S. industrial sector has been performing so well that both rents and prices have been nearing records. But a recent report from the logistics giant Prologis highlights just how intense the competition for space has become, noting that the logistics space in the U.S. is “effectively sold out.”

A third-quarter report from the firm noted that U.S. industrial net absorption reached 115 million sq. ft. in the third quarter, representing a doubling from a year ago, while the national vacancy rate hit a record low point of 3.9 percent.

At the same time, extreme competition for a modern industrial product pushed the average national rent growth in the sector to 7.1 percent, while rent growth in densely populated markets and near ports of entry is now in the double digits, with Prologis expecting a continuation of these trend in the near future.

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