2019 National Industrial Absorption
- Oct 25, 2019
Year-over-year, net absorption rates for industrial markets decreased in the second quarter of 2019 by 42.6 percent on a national level, according to CoStar Group data. Compared to the same interval in 2017, national rates fell by 46.1 percent. Regionwide, the most notable drop on a year-over-year basis came from the West, where absorption was down by 48.9 percent. Industrial net absorption decreased by 45.8 percent in the Midwest, followed by the South with a 40.8 percent drop. Absorption recorded the smallest decrease in the Northeast, down by 29.3 percent. Forecasts for absorption in the industrial sector are positive for the second quarter of 2020, showing that rates are projected to increase in most regions. Net absorption rates are expected to grow by 18.9 percent on a national level. The most considerable growth is expected to come from the Midwest (up by 32.1 percent), followed by the West (up 31.8 percent). Absorption rates are expected to increase by 16.8 percent in the South. The only drop is projected to come from the Northeast, where absorption is expected to decrease by 12.5 percent.
—Posted on Oct. 25, 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