Industrial Sector Update – May 2017

The U.S. industrial sector is experiencing its longest expansion on record. The vacancy rate in this sector dropped to 5.3 percent in Q1-2017 which is 300 basis points lower than the ten-year historical average of 8.3 percent, according to Cushman and Wakefield. Net absorption since 2010 is over 1.3 billion square feet.

To accommodate the requirements of the fast-growing e-commerce industry, American warehouses, which in 1960 averaged 24 feet high now average 33 feet high, according to Bisnow (citing CBRE).

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