While demand did not keep pace with new supply delivered in Q4 2017, full-year demand did exceed total new deliveries in 2017. The industrial market’s availability rate remained steady for the sixth consecutive quarter at 7.4%—the lowest level since Q1 2001.
New supply totaling 51.7 million sq. ft. was delivered in Q4, on par with the previous quarter. The 2017 total of 195.3 million sq. ft. was up 2.0% over 2016 and was the largest delivery total of this cycle.
Though supply and demand are in balance, net asking rents still grew slightly (0.6%) in Q4 to $6.92 per sq. ft. Rent growth for the year was strong at 5.3%. Asking rents reached an all-time high in Q3 2016 and have set a new record in each subsequent quarter.