August 19, 2022

Still-hot Industrial Showing Signs of Cooling

The NAIOP Research Foundation has published the NAIOP Industrial Space Demand Forecast for Q3 2022.

• While industrial net absorption remains positive, leasing activity is cooling from 2021's record pace, as occupiers respond to increasing costs, slowing e-commerce growth and an uncertain economy.
• The forecast predicts that total net absorption of industrial space in the second half of 2022 will be 112.4 million square feet and full-year absorption in 2023 will be 209.4 million square feet as demand returns to pre-pandemic levels.
• The macroeconomic environment is more challenging than it was in 2021, but industrial real estate remains in short supply. Record-low vacancy rates should continue to support rent growth and new development.