Cushman & Wakefield - Industrial Fact of the Week - May, 15 2012
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. James.Breeze@cushwake.com (909) 942‐4655
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.