• While supply out-paced demand during 2019, developers are reacting to a somewhat protracted demand environment and slowing the pace of new construction starts with nearly half as much supply starting construction this year compared to last.
  • Pricing largely held fast during 2019 as vacancy trended upwards. Concession packages, lease terms and average lease sizes also remained relatively unchanged during the past year.
  • Demand persisted from an investment standpoint as sales volumes remained elevated compared to the 10-year average and cap rates remained low.
  • The pace at which 1 million-sq.-ft. warehouses were both absorbed and began construction provided little concern that this market segment will add to oversupply in the near term.