• U.S. economic data were mostly positive in Q1 2017, and both businesses and consumers remain optimistic about prospects for the year ahead. 
  • User demand slowed in Q1 with positive net absorption of 33.1 million sq. ft. —down 42% from the previous quarter and 48% from Q1 2016. 
  • The 44.9 million sq. ft. of new construction delivered nationwide in Q1 exceeded user demand, ending a 26-quarter streak of supply/demand imbalance that dated back to 2010.  
  • With new construction outpacing demand, the overall industrial availability rate increased by 10 basis points (bps) to 8.0%, the first increase in the past 26 quarters.
  • Very low vacancy in the Class A segment and intense competition between supply-chain and distribution users for this space have helped drive strong rent growth across most of the nation’s industrial markets.