Magazine article Mortgage Banking

Industrial Market Remains Strong during 4Q

Magazine article Mortgage Banking

Industrial Market Remains Strong during 4Q

Article excerpt

Following a strong third quarter, the industrial real estate market was marked by steady demand during the fourth quarter of 2006, although rents and construction did not increase as much as anticipated, according to Boston-based Colliers International Property Consultants Inc.

Fourth-quarter absorption was back above the 50-million-square-feet (msf) threshold with occupied space increasing by 50.9 msf, compared with 48.4 msf during the third quarter but slipping from the 57.5 msf during the fourth quarter of 2005.

Full-year absorption totaled 188.6 msf in 2006, as compared with 2005 when occupied space increased by 222.8 msf, said Colliers.

The warehouse market is poised for steady performance in 2007, although all eyes will be on the supply side, which is beginning to show signs of oversupply, noted Ross Moore, senior vice president and director of market and economic research at Colliers International.

"Vacancy levels are unlikely to retreat, and have largely hit bottom for this cycle--but we don't expect a major increase anytime soon," said Moore. "That said, for both investors and tenants, market fundamentals look promising into the foreseeable future. …

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