Grubb & Ellis’ 3rd Quarter 2011 Industrial Market Report reveals some interesting trends. Since vacancy peaked in the Second Quarter of 2010 @ +17%, the market has consistently reduced its vacancy rate to the 13.1% it currently totals. That’s 5 consecutive quarters with positive net absorption. This past quarter showed office absorption that totaled 477,518 sf, which results in an 800,000 sf absorption # since the beginning of the year. All sectors of the office market improved including warehouse/distribution, general industrial, and R&D/flex space.
Asking rents have not risen along with this uptick in activity, but they appear to have stabilized. Projections suggest rent should remain flat over the next year and that 2011 should finish with continued net positive absorption.
