Slower industrial absorption predicted for 2014
Good and bad news here. Yes, industrial absorption will likely be less this year, which is due to the absorption of a lot of pretty good space in late 2013! So the theory is this…Yes, there are more serious tenants and buyers out looking for space in the industrial sector, the reality is that they are going to have a difficult time finding the space they need because most (not all) of the remaining available space has at least some functional obsolescence.
Yes, I am quoted in the article but my comments to the reporter (while accurate) were whittled down. Yes, I agree that there is less competitive space on the market. Yes, I believe there are more real tenants and buyers out there as well. But no, the Amazon (Windsor), FedEx (South Windsor), Dollar Tree (Windsor) etc. developments are not examples of the drying up of product in the market. The reality is this market has ALWAYS had a dearth of high bay, large box alternatives for these type of large users. The reality is the large box warehousers have ALWAYS had to build to suit for their needs. The real news is that we are more and more becoming an attractive location for these type requirements.
See attached Hartford Business Journal article (well done): Choosey tenants slow backfill of empty industrial space