The COVID-19 pandemic has forced some states to impose strict stay-at-home orders that are adversely affecting many industries. This is leading the U.S. economy into a recession that will result in very sharp declines in GDP for H1 2020 and in job losses, particularly in the retail, food & beverage and transportation sectors.
Despite the downturn, robust fundamentals in Q1 showcase that the U.S. industrial market was on solid ground prior to the COVID-19 pandemic. Although market conditions have shifted considerably since mid-March, there still is strong evidence of industrial sector resiliency.
In Q1, net asking rents rose by 4.8% year-over-year, 34 million sq. ft. of positive net absorption was recorded and the vacancy rate was at a near-record low of 4.5%.