SIOR’s predict strong year
The CT and Western MA chapter of SIOR recently released its semi-annual survey that predicts the strength (or lack thereof) of the industrial markets in Connecticut and Western Massachusetts.
By all accounts…things are looking up! One third of the members indicated an improving market throughout 2014 and 62% predict continued improvement in 2015. 65% predict a decrease in vacancy levels. That said, only 35% predict an increase in pricing and only 29% believe development will increase in 2015.
IF there isn’t an uptick in development and there IS an uptick in leasing activity, it’s hard to believe that pricing won’t follow. In fact, I would make the argument that pricing has increased in most markets. Maybe not to the point that creates new, speculative construction (constructions costs are too high for present rent levels), but certainly to a point that landlords are starting to feel better about their cash flow.
See attached: CT/Western MA SIOR Market Study