National Vacancies

Vacancy rates decreased year-over-year in all the regions, with the largest change occurring in the Northeast, which fell from 6 percent in the fourth quarter of 2015 to 5.3 percent in the fourth quarter of 2016.

U.S. industrial market conditions from Q4 2014 to Q4 2017*

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

During the fourth quarter of 2016, net absorption for industrial markets increased, compared to the same quarter of 2015, in the Midwest and Northeast, with the largest gain (18 percent) in the Northeast. It decreased in the South (down by 0.8 percent) and West (down by 8.2 percent). Vacancy rates decreased year-over-year in all the regions, with the largest change occurring in the Northeast, which fell from 6 percent in the fourth quarter of 2015 to 5.3 percent in the fourth quarter of 2016. Forecasts show that net absorption in the industrial markets is only expected to rise in the West (by 9.2 percent) in the fourth quarter of 2017, with decreases in the other regions. The most significant decrease is expected to be in the Northeast, with an approximately 9.8 percent drop. Vacancy rates are expected to remain almost the same in the fourth quarter of this year.