July 21, 2008
The U.S. industrial vacancy rate ended the second quarter at 8.2%, an increase of 30 basis points from the first quarter and 60 basis points from the year-ago quarter. Net absorption fell to 9.6 million square feet in the second quarter, its lowest level since 2003-Q1 and well below completions totaling 45.8 million square feet. Asking rental rates were flat. The market has embarked on a softening cycle that is likely to extend through at least mid-2009, but the pace of deterioration is expected to be shallow compared with the last down cycle in 2001 and 2002.
Source: Grubb & Ellis Company
Robert Bach currently serves as senior vice president of research & client services at Grubb & Ellis Company in Chicago, Illinois and he can be contacted at (312) 698-6754. For more information about Grubb & Ellis Co., go to www.grubb-ellis.com.