Industrial Construction Slows Down a Bit
CHICAGO—Industrial construction volume tapered down moderately across the country during the first three quarters of 2017, following several strong years, according to a report from Avison Young’s national industrial capital markets group. Demand remains strong, however, as low vacancy rates in many markets help fuel continued demand for new space.
The company based its analysis on CoStar and Real Capital Analytics statistics. The data show developers across the country delivered 188 million square feet of new industrial space in the first three quarters of 2017, a 5% decrease from the same time period in 2016, when deliveries totaled 199 million square feet. Still, the overall pipeline of construction remains strong, with an additional 280 million square feet of space under construction nationally at the end of the third quarter.