Industrial Market Posts Strengths
Colliers International is reporting that the industrial real estate market posted a strong second quarter, with absorption back up above the 50.0 million square feet (msf) threshold — coming in at 52.8 msf — compared with 39.3 msf during Q1 and 53.5 msf during the year-ago quarter.
According to Ross Moore, SVP for Colliers, the manufacturing and logistics sectors continue to post healthy gains, supporting a very strong warehouse leasing market. While Colliers was surprised that rents haven’t moved higher as warehouse availability continues to shrink, they sill believe their forecast of a 10 percent increase in lease rates during 2006 is still attainable.
In Las Vegas, The Metropolitan Warehouse Space Markets reported a vacancy rate of 3.9% in May 2006. In June, it had dropped to 3.3%.