The NAI Alliance Industrial Properties Group has released its 2Q15 Industrial Market Report.
Second quarter was another quarter of strong gross and net absorption. Boosting numbers this quarter was the roof completion on a large build to suit transaction of 770,650sf for Petco in the Stead area. This one transaction accounted for 40% of the month’s gross absorption and 72% of the month’s net absorption. Aside from Petco, the quarter was positive with tenants continuing to slowly absorb existing product. Another factor skewing numbers this quarter was the addition to market of the KTR speculative 566,875 square-foot facility in the Tahoe Reno Industrial Center. Adding this property to the available inventory resulted in an increase in vacancy rate despite strong absorption. The quarter began with a vacancy rate of 8.6% and finished with a vacancy of 8.8% (8.7% excluding sublease space). Depending upon demand, this could continue as more speculative buildings are completed in the third and fourth quarters.
To continue reading, click here for the 2Q15 Industrial Market Report.