Demand for industrial space continues to swell and construction is increasing, reaching record-breaking levels, CommercialEdge details in its monthly National Industrial Report.
The average sale price for industrial space was $125 per square foot in February. Ongoing investor demand continues to drive transaction activity to new heights, the report shows.
Industrial space in Seattle is fetching the highest sales prices nationwide, at $357 per square foot. The Bay Area follows at $311 per square foot and Los Angeles at $258.
National sales volume surpassed $9 billion in the first two months of this year. “This strong start is a clear indication that investor interest in industrial properties is anything but abating, given that the first quarter of a year is typically the slowest for commercial real estate transactions,” the report notes.
Nationwide rents for industrial space averaged $6.45 per square foot in February, a 4.4% jump over last year, CommercialEdge’s report shows.
Southern California markets are leading the nation in rent expansion, mostly due to intense activity in Los Angeles and Long Beach, Calif., the report shows. Orange County, Calif., had the highest change with a 7% increase and reaching $11.65 per square foot. Los Angeles followed with a 6.7% increase and then the Inland Empire at 6.5%.
As the industrial sector continues to boom, more construction is underway across the country. A total of 593 million square feet of industrial space under construction nationwide as of February.