{"id":1004034314,"date":"2011-11-18T06:39:59","date_gmt":"2011-11-18T14:39:59","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004034314"},"modified":"2022-12-08T11:13:29","modified_gmt":"2022-12-08T19:13:29","slug":"exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows\/","title":{"rendered":"Exclusive: Industrial Vacancies Set to Decline Through 2015, Cushman Report Shows"},"content":{"rendered":"

November 18, 2011<\/strong>
\nBy Nicholas Ziegler, News Editor<\/em>
\n

\"\"<\/a>

Central Arizona Distribution Center in Casa Grande<\/p><\/div><\/p>\n

In its five-year outlook, commercial real estate services firm Cushman & Wakefield sees industrial vacancy rates dropping \u201cconsiderably\u201d over the next five years. The current rate, 9.6 percent, may fall by a full percentage point each year beginning in 2012, culminating in a 6.6 percent overall vacancy rate by 2015. While the markets of Dallas, Phoenix, the Inland Empire, Houston and Silicon Valley will see the largest decreases in that time period, Los Angeles, Portland, Orange County and Miami are \u201cpoised to claim the lowest vacancy rates in the U.S. by 2015.\u201d<\/p>\n

Such a marked change ties directly to the pace of construction, according to Jim Dieter, executive vice president for Cushman\u2019s industrial-brokerage unit.<\/p>\n

\u201cThe tremendous lack of new construction that has taken place over the past\u00a0several years since the market went south has actually\u00a0had a\u00a0positive effect on the overall U.S. industrial landscape,\u201d Dieter told Commercial Property Executive<\/em>. \u201cThe large amount of supply of available space over the last several years with a weakened demand had caused a high vacancy rate which in turn causes lease rates to go down and had an overall negative effect on the health of the market.\u201d<\/p>\n

The report split its predictions into three areas: warehouse and distribution; manufacturing; and flex space. Of those, manufacturing will remain one of the recovery\u2019s brightest spots, with more than 90 percent of major markets seeing measurable declines in manufacturing vacancy by 2015. Additionally, West Coast markets, with higher development constraints and costs of ownership, will see an uptick in rental rates while markets in the South and Southwest \u2013 with stronger competitive pricing \u2013 will see lower appreciation on those rates.<\/p>\n

\u201cThe West Coast, especially Southern California, is always the first major market to show a slowdown when a recession is about to occur,\u201d Dieter said. \u201cAnd it is also almost always the first major market to show signs of coming out of the slowdown. Usually, the market follows.\u201d<\/p>\n

In the current case, according to Dieter, both of those scenarios occurred and the major industrial markets in Southern California are leading the way in terms of absorption, construction, dropping vacancy rates and increased rental rates.<\/p>\n

In general \u2013 and prior to the recession that started in the 2007 or 2008 timeframe \u2013 demand for flex space has been dropping for the last decade. But certain areas of that sector, including cloud computing and domestically backed call centers, are expected to buoy the entire segment as vacancy rates are expected \u201cto decrease to the high single digits for the first time since the start of the technology bust in 2000.\u201d<\/p>\n

The report also notes that, in addition to the indicator that is the Southern California area, coastal markets in general will tighten more quickly than those in the inland United States.<\/p>\n","protected":false},"excerpt":{"rendered":"

In an exclusive interview with CPE<\/em>, commercial real estate services firm Cushman & Wakefield sees industrial vacancy rates dropping “considerably” over the next five years, going as low as 6.6 percent by 2015. <\/p>\n","protected":false},"author":1201,"featured_media":1004034315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21808,21748,13,21742,10,15],"tags":[],"class_list":["post-1004034314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-featured","category-industrial","category-midwest","category-latest","category-northeast","category-west"],"acf":[],"yoast_head":"\nExclusive: Industrial Vacancies Set to Decline Through 2015, Cushman Report Shows - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exclusive: Industrial Vacancies Set to Decline Through 2015, Cushman Report Shows\" \/>\n<meta property=\"og:description\" content=\"In an exclusive interview with CPE, commercial real estate services firm Cushman & Wakefield sees industrial vacancy rates dropping "considerably" over the next five years, going as low as 6.6 percent by 2015.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2011-11-18T14:39:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T19:13:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2011\/11\/111811-2592-East-Hanna-Road-Casa-Grande-Arizona.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"433\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/exclusive-industrial-vacancies-set-to-decline-through-2015-cushman-report-shows\/\",\"name\":\"Exclusive: Industrial Vacancies Set to Decline Through 2015, Cushman Report Shows - 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