The 2020 Mid-Year Economic Update_long

Demand for Industrial Space Expected to Grow Throughout 2012

NAIOP report: Growth in the fourth quarter 2011 came in at an annualized rate of .87 percent.

Fourth quarter 2011 growth for industrial space demand was lower than the historical norm of 1-2 percent a year. The current annualized rate of growth, according to the NAIOP Research Foundation’s Industrial Space Demand Forecast, came in at .87 percent, in line with the past several quarters.

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Most the demand for industrial space is driven by the overall economy. “Although still small, it’s encouraging to see some positive growth in the industrial markets. It is evident that the industry won’t return to more normal rates of growth until the U.S. and global economies stabilize,” said Thomas J. Bisacquino, NAIOP president and CEO.

Demand for industrial space is expected to growth at an annualized rate of 1.01 percent in the first quarter 2012, at the low end of the normal range. Increasing rates of growth are expected to begin to occur in the second or third quarter of 2012.

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