Summary
The industrial vacancy rate continues to trend downward and has reached multiple historic lows in 2019. Since July, the rate has increased roughly 0.4% which can be attributed to the addition of several recently vacated properties. New construction has not contributed much to this increase as only two projects are actively underway.
Median lease rates on a Modified Gross and Triple Net basis remain flat, a circumstance which is out of line with vacancy trends. While quality space is in short supply, tenant needs are not pressing enough to justify paying a premium. Low interest rates and competitive financing terms have caused some users to transition from tenant to owner, leaving the lease market permanently.
