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Cushman & Wakefield - Industrial Fact of the Week - May, 15 2012


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Cushman & Wakefield - Industrial Fact of the Week - May, 15 2012

  1. 1. F INDUSTRIAL   RESEARCH FACT OF THE WEEK     MAY 15, 2012 Building a culture of oneness… …through increased knowledge U.S. RETAIL SALES VS. INDUSTRIAL VACANCY RATESource: Cushman & Wakefield Research, Moody’s Analytics. Only markets tracked by Cushman & Wakefield officesare included in this analysis. Retail  sales  continued  to  climb  and  totaled  $1.2  trillion  in  the  first  quarter.  This  marks  the  twelfth  consecutive  quarter  of  retail  sales  growth.  With  home  building  picking  up,  building  material  and  garden  supply  dealers  experienced  a  13.7%  annual  increase,  according  to  the  U.S.  Department  of  Commerce.  Meanwhile,  furniture  stores  and  the  clothing and apparel sector advanced by over 10.0% compared to this time last year.    Reflecting these improvements, retailers and 3PLs continue to lease more space to keep  up  with  demand.  In  the  first  three  months  of  the  year,  69.7  msf  of  new  leases  were  signed,  the  highest  level  since  79.3  msf  of  leasing  activity  was  recorded  in  the  first  quarter of 2007.    With increased demand, the overall vacancy rate declined to 9.0%, its lowest level since  the end of 2008, when the overall vacancy rate was 8.3%. Since the beginning of 2011,   industrial  users  have  absorbed  99.4  msf  of  manufacturing  and  warehouse/distribution  space.   With demand outpacing supply, new speculative development is back on the horizon. At  the end of the first quarter, 5.9 msf of new supply was added to the inventory and 3.9  msf of that were built on a speculative basis.  Approximately 24.9 msf is currently under  construction  and  proposed  for  completion  this  year,  which  would  be  an  increase  from  the 20.5 msf completed in 2011.  (909) 942‐4655 
  2. 2. INDUSTRIAL FACT TEAM Tina Arambulo, Los Angeles Ted Harrison, Phoenix James Breeze, Los Angeles Steve Harriss, Dallas Corey Deslandes, New Jersey Robert Hoefer, Houston Neil Hamilton, Orlando Amanda Ortiz, ChicagoPlease click here to access the electronic version of this information.