Unprecedented Build-to-Suit Deliveries Help Push Demand to New High
Record construction deliveries, highlighted by the completion of eight build-to-suit projects totaling a massive 11.2 million square feet combined with a record-matching 15.4 million square feet of new leases and lease expansions to push net absorption to 18.2 million square feet during the third quarter of 2021, nearly double the previous quarterly net absorption record of 9.6 million square feet recorded in 2011.
Key Takeaways
- Eight build-to-suit construction projects totaling 11.2 million square feet were delivered during the third quarter of 2021, accounting for 61 percent of the quarterly net absorption total of 18.2 million square feet, a new record.
- The industrial vacancy rate has dropped by 69 basis points over the past year to 6.03 percent, the lowest rate since 2001.
- New leases and lease expansions totaled 15.4 million square feet during the quarter, matching last quarter’s record.
