Industrial Market Trends

US Industrial vacancy rate is currently at 8.03% and projected to increase to over 11% by end of 2010. The lower vacancy rates will place downward pressure on rental rates. Leasing activity has been cut in half as compared to last year with high negative absorption.

U.S. Seaports across the country will continue to experience lower vacancy and higher rents. National average total time to lease up space is 400 days with no increases in rents expected. Economy. com is projecting 5 million jobs lost in 2009, negatively impacting industrial markets. Industrial sales prices are expected to decline by at least 15% with cap rates increasing 150 basis points towards 9%.

Source: Sperry Van Ness|RealSite Commercial Group