There is a lot of discussion from experienced industrial real estate brokers about the scarcity of industrial space. Nationally, the industrial space market continues to break records with 240 million square feet of net absorption over the last five years. As national vacancy rates fell to 4.8 percent and real estate brokers experienced 34 consecutive months of declining availability, the industrial market is the tightest on record.
The tight market has fueled a rapid and sustained rise in the cost of leasing industrial space. Since rent is typically a major line item for most companies, businesses are beginning to feel the vacancy shortages impact on profitability. However, for businesses looking to escape high rents, sale prices offer no relief as in many of Lake County’s sub-markets they have outpaced rents. As available property with desirable square footage and specifications nears zero, expect prices to increase.
In addition to low vacancy rates, finding functional industrial spaces that meet
Although there is no guaranteed solution, understanding the industrial marketplace is a challenge for buyers and tenants is an essential first step. After accepting the difficulties of the marketplace, starting your search early is critical. Moreover, when the right building hits the market it is vital your business is ready to pull the trigger.