The Story of Constrained Industrial Real Estate Supply In Two Visuals

The story of constrained industrial real estate supply (under 100,000 sf) told by two excellent visuals. 

Continued healthy demand and limited new supply create an opportunity to drive future rent growth, specifically for industrial properties under 100,000 sf. 

Chart 1 shows the dramatic focus of new construction on larger properties. 0 % of total current inventory < 25,000 SF = 29%. 0% of total inventory under construction that is < 25,000 SF = 2%.

Chart 2 shows the falling vacancy rate for industrial properties under 100,000 SF. Vacancy is tighter for smaller properties than the broader average o  Vacancy rates are near all-time lows with little new supply under construction. New construction starts are projected to decrease further in the near term.