Market Trends
- High-quality industrial space continues to hit the market, driving deliveries and vacancy higher. Major industrial parks on the outskirts of the city are driving most of the new supply.
- Rental rates have softened in the short run due to the abundance of new, high-quality space. Large sublease spaces with low rates have also impacted overall asking rates for the quarter. We can expect rates to stabilize as these spaces fill.
- Build-to-suit options on vacant land in new industrial parks are becoming more common. These allow space to be listed while enabling developers to delay construction while interest rates remain elevated.