In Q1, net absorption remained stable, with over 684,000 sf of occupancy gains.

Vacancy dropped 40 bps to 1.6%, despite 5.4 million sf of new inventory.

No major completions occurred, maintaining tight market conditions.

Confidence among developers remains high, with 3.7 MSF under construction and 6.0 MSF of planned projects starting preparations.

Demand decreased by 25.6% in Q1, reaching normalized levels due to limited space availability.

Asking rents soared, with overall industrial rents at $13.83 PSF NNN, up 35.0% YoY.

Absorption gains in Q1 matched 4Q22, remaining stable but not reaching record levels seen in 2021-2022.

Original article published by Cushman & Wakefield here.