During the past six months, U.S. industrial leasing has maintained the record-high levels hit during the second quarter of 2021 but has not accelerated further. Meanwhile, the total square footage of new industrial space under construction is 44% higher heading into this year than it was at the beginning of 2021.
While industrial leasing and rent growth could begin to decelerate in 2022, the current health of the U.S. consumer and shortage of available industrial space signal that the industrial property sector is on track for another outstanding year. This strong property performance should help keep capitalization rates from rising and could even push them lower if interest rate increases once again fall short of consensus expectations.
Costar News Industrial Leasing
Costar Industrial Leasing Forecast