Industrial Continues to Sizzle in 2018

It was a good year for commercial real estate’s industrial sector in 2017, and 2018 is expected to bring more of the same, according to Integra Realty Resources’ new 2018 Viewpoint Industrial Report.

“Industrial, without a doubt, stands head-and-shoulders above the other commercial property types as we enter 2018,” according to Hugh Kelly, the economist who partnered with Integra Realty Resources on the report. “A multi-year pattern of double-digit total returns, coupled with absorption rates exceeding the pace of new development, have bolstered occupancy levels and rent growth in the majority of U.S. markets.”

The numbers paint quite a positive picture. An increase of 2.64 percent in market rents is anticipated for the warehouse/manufacturing facilities in 2018, and the flex properties are expected to see an increase of 2.25 percent. Looking at individual cities, Cleveland, Hartford, Naples and Seattle are on track to experience a 5 percent—or more—rent growth this year.

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