IE Business Daily Business news for the Inland Empire.
The U.S. industrial market is expected to continue its strong resurgence in 2015.
Demand is again expected to outpace supply, while available space will decline and rents are predicted to rise, according to CBRE Group Inc.’s 2015 U.S. Industrial Outlook.
In other words, the industrial market’s four-year surge is expected to segue into its fifth year with little or no difficulty, according to the global commercial real estate brokerage.
“There is still plenty of upside for the industrial market, particularly for rental growth,” said Scott Marshall, CBRE Group’s executive managing director of industrial services in the Americas, in a statement.
“Both cyclical demand drivers – GDP growth and expanded manufacturing – and structural demand drivers – e-commerce and supply chain evolution – will promote strong user demand across geographies and product types.”
Net industrial absorption nationwide reached 224.1 million square feet last year, well above that category’s long-term annual average of 133 million square feet. That trend is expected to continue, which will cause industrial rents to rise four to five percent during 2015, the report stated.
CBRE Group noted the demand for industrial buildings 200,000 square and larger is especially strong in Southern California, and it singled out the Inland Empire for posting positive net absorption of 16.1 million square feet of industrial space last year.
That included 2.5 million square feet of absorption during the fourth quarter, according to the report, which was released Friday.
