During the fourth quarter, about 5.6 million sq. ft. of industrial space was absorbed, bringing 2018’s total absorption to almost 18.1 million sq. ft.
The flurry of activity decreased the vacancy rate to 5.7%, the lowest ever recorded, even with the market delivering 13.4 million sq. ft. of new industrial space during the year.
Rents are also at historic levels as the average asking rate increased another $0.08 per sq. ft. over last quarter to finish the year at $4.90 per sq. ft. on a triple net basis.
Although supply chain employment is growing, the labor supply has been tightening as the nation closes in on full employment.