Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Industrial Market Improves After Disappointing First Quarter
BOSTON -- Industrial real estate markets improved markedly in the second quarter, with 38.4 million square feet of absorption, compared with only 9.8 million square feet during the first quarter, according to a recent survey of North American markets by Colliers International, a global commercial real estate firm.Year-to-date absorption is 48.2 million square feet, and as a result, Colliers has revised downward its forecast for industrial absorption in 2004 and now believes the market will absorb only 110 to 120 million square feet during the year, down from its earlier prediction of 150 million square feet."Although the industrial real estate market did not absorb as much space during the first half of the year as we had earlier anticipated, it is still a considerable improvement over 2003," said Ross Moore, vice president and director of research for Colliers. "We have nearly equaled the absorption from 2003 already this year, and most markets are forecasting that demand will stay at current levels or higher for the remainder of 2004."Rents held steady during the second quarter with most cities showing little or no change. No significant movement on rents is predicted until 2005.During the second quarter, new construction totaled 28 million square feet, down slightly from 30.7 million in the first quarter. Another 60.0 million square foot is under construction and anticipated to be completed during the second half of the year.New construction in square footage and vacancy rates as of June 30 for Ohio and Pennsylvania geographic markets included in the study for the second quarter of 2004 are as follows:Cleveland: 687,910, 10.6%Cincinnati: 352,800, 8.8%Pittsburgh: 122,000, 16.7% Colliers International is a partnership of independently commercial real estate firms. The organization's 8,683 employees work in 247 offices in 50 countries. On a worldwide basis, the company reports revenue of $995 million.Visit Colliers International: www.colliers.com"