Posts by Hughes Marino

Fall 2022 National Industrial Market Outlook—The Tide Begins to Turn for Tenants

Hughes Marino on September 14, 2022

After two years of record low vacancy and 10% to 20% annual rent inflation for industrial properties around the country, it looks like the market is finally coming in to balance. Rumblings of recession and slower consumer demand have already caused some corporate tenants to put a pause on expansion requirements and slow down their demand for industrial space going into 2023. Landlords can no longer assume that Amazon will lease their new warehouse buildings as they are shifting to an owned real estate strategy, and reports in the last quarter signal that Amazon will put at least 10,000,000 SF of warehouse space on the market for sublease in markets like Southern California, Atlanta, New York and New Jersey. Additionally, a cooling housing market across the country is slowing down new construction, thus reducing the residential real estate industry’s supply chain requirements.