The National Industrial Market: Conditions & Trends

June 2021
Newmark Industrial & Logistics Research presents the first quarter 2021 National Industrial Slide Deck, focusing on market conditions and trends affecting industrial real estate.

High-Level Takeaways

1. Market Characterized by Nearly Universal Growth

‒ Average asking rents grew 7.3% over the past year to $8.10/SF/NNN

‒ Demand remained at near-record highs with 74.4 MSF in quarterly net absorption

‒ More development underway than ever before: 371.2 MSF

2. Secondary Markets are Rapidly Expanding

‒The top 10 markets for rent growth were all secondary industrial markets

‒The development response to pent-up demand in secondary and tertiary markets is accelerating quicker than in most gateway markets

3. Economic Recovery Will Continue to Fuel the Industrial Market

‒ Supply chains are swelling with goods to meet demand: port imports, freight shipments and business inventories have all grown year-over-year

‒ Retail sales increased 27% from March 2020 and e-commerce continues to take an even greater share of those sales

‒ The labor market has substantially recovered from 1Q20 although job recovery has slowed

4. Keeping Pace with Global Consumption Will be a Challenge

‒ Supply chain disruptions persist from the pandemic and are putting pressure on transportation costs

‒ A widespread shortage in commodities is driving up pricing and lengthening timelines for construction

‒ Lack of availability in land-constrained markets will remain an obstacle