Q2 2023 US Industrial Figures

Executive Summary

• The U.S. industrial market added 83 million sq. ft. of vacant supply in Q2, the second largest quarterly total on record. As a result, the overall vacancy rate increased for the third consecutive quarter, up by 30 basis points (bps) to 3.7% but still below the 10-year average of 4.7%.
• Construction completions remained robust at 136 million sq. ft., 38.6% of which was occupied. This was slightly lower than the 43% occupancy rate for Q1 completions.
• Under-construction projects declined for the second consecutive quarter to 578 million sq. ft., down by 7.7% from Q1 2023 and just over 25% preleased.
• Leasing activity fell by 18% year-over-year to 372 million sq. ft. but remains on track to hit CBRE’s forecast annual total of 725 million sq. ft.
• Net absorption of 68.3 million sq. ft. in Q2 brought the year-to-date total to 125.7 million sq. ft.—down by nearly half from this time last year.
• The average asking rent rose by 1.3% quarter-over-quarter and 9.9% year-over-year to a record $10.06 per sq. ft. The average taking rent increased by 16.6% year-over-year.