2019 National Industrial Absorption
- Jul 23, 2019
Year-over-year, net absorption dropped for industrial markets in almost every region in the first quarter of 2019, according to CoStar Group data. The most substantial decrease came from the West, down 37.6 percent, followed by the Midwest (36.5 percent decline) and the South (down 24.3 percent). The only positive change came from the Northeast, where absorption was up 8.6 percent. Industrial net absorption decreased by 27.3 percent on a national level. Compared to the same quarter in 2017, national absorption rates dropped by 32.4 percent. Forecasts for the first quarter of 2020 show that industrial net absorptions are projected to decrease in every region. The Northeast is expected to record the most significant drop (down 50.4 percent), followed by the Midwest (down 27.4 percent) and the South (down 26 percent). The smallest decrease is projected to come from the West (down 8 percent). National net absorption rates are projected to fall by 26.2 percent in the first quarter of 2020.
—Posted on July 23, 2019