Gap Between Industrial Supply, Demand Narrows
LOS ANGELES–Industrial’s story for the last few years has been nothing but growth and then more growth. Now, new numbers from CBRE Econometrics Advisors show that the distance between strong demand and what was once limited supply is beginning to tighten.
To be sure, net absorption continued to outpace completions in the first quarter of 2018 but the gap has narrowed, it said in a report. Net absorption and completions over four quarters were 215 million and 204 million square feet, respectively, meaning that excess demand was 11 million square feet — down significantly from 100 million square feet in Q1 2017. Going forward, a strong pipeline will mean that the demand-supply gap will likely fluctuate around zero, CBRE said.