Our latest research report — Q1 2020 Industrial Market Outlook — presents key trends and statistics for the U.S. industrial market. The U.S. economy has been hit hard by the COVID-19 pandemic. The record-long economic expansion was brought to an abrupt halt in the first quarter of 2020, with annualized GDP growth contracting by 4.8%. Analysts are predicting that this will pale in comparison to Q2 2020, when projections for annualized GDP growth are in the negative 30% to 40% range.
- At the end of the first quarter, U.S. industrial property fundamentals remained healthy with minimal disruptions to the current growth trajectory.
- Record-high asking rents and product under construction were recorded, and overall net absorption nearly doubled year over year.
- Quarterly occupancy gains totaled 63.5 million square feet, significantly higher than the 32.5 million square feet recorded one year ago.
- Healthy levels of new supply, as well as increased demand for essential supplies, maintained momentum in the industrial sector during the first quarter.
- Development pipelines remained robust at the close of the first quarter with most state authorities deeming industrial construction as an essential business. Q1 2020 new supply outpaced the previous year by 41.9% and totaled 84 million square feet.
- Year-over-year occupancy gains nearly doubled during the first quarter, and sustained demand for quality industrial product should hold momentum in this sector.
For more details on the latest industrial trends, download the Q1 2020 U.S. Industrial Market Outlook.