The two sides of rent growth: One man’s ceiling is another man’s floor

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With annual net absorption up 17 percent and the total U.S. vacancy rate nearing a 7.5 percent periodic low, we are no doubt pushing towards a landlord’s market. The greatest rent increases are occurring in the high-octane logistics corridors such as the Inland Empire, New Jersey and Dallas. The bottom line is that industrial property owners will see increasing rents from tightening market fundamentals. It will be broad across many markets since new construction is still somewhat in-check. Rents, in the end, will grow faster for new product versus existing inventory. While Class B space will post gains, most of the upticks will occur in the nations gateway corridors. Read this weeks IndustrialImpact series to learn more about the two sides of rent growth.

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