National Vacancies

Vacancy rates year-over-year decreased in all regions, with the largest change coming from the Northeast, which tightened to 4.9 percent from 5.8 percent in the first quarter of 2017.

U.S. industrial market conditions from Q1 2015 to Q1 2018*

*Monthly chart cycles among office, industrial and retail. Source: CoStar Group Inc.
*Monthly chart cycles among office, industrial and retail. Source: CoStar Group Inc.

Net absorption for industrial markets decreased during the first quarter of 2017, compared to the same quarter of 2016, only in the Midwest, with a loss of 1.3 percent. In all other regions, net absorption increased, the most significant change coming from the Northeast, up by 28.9 percent. Vacancy rates year-over-year decreased in all regions, with the largest change coming from the Northeast, which tightened to 4.9 percent from 5.8 percent in the first quarter of 2017. Forecasts show net absorption decreasing in the first quarter of 2018 only in the Northeast, which is expected to drop by 25.7 percent while other regions experience increases. The most significant increase is expected to be in the West, at approximately 23.2 percent. Vacancy rates for industrial markets are expected to decrease in all regions in the first quarter of 2018, with the largest decrease expected in the South: approximately 7.5 percent.