The red-hot industrial market is starting to see the effects of high demand and lack of space catching up with each other, according to SIOR’s latest Snapshot Sentiment Report. This caused confidence in the industrial sector to drop for the first time in sentiment reporting.
The average level of confidence in the industrial sector dipped below 8 (out of 10) in the first quarter, declining 6% from 8.2 in Q4 2021 to 7.7 in Q1 2022. Although they’re still prospering despite a pandemic, many SIOR industrial specialists see fewer options amid increasingly low vacancies and continued rising interest rates and construction costs.
Conversely, the office sector is continuing its rebound, with SIORs reporting a higher confidence in market conditions, an improvement in transactions, and both vacancy and subleasing dropping significantly. The average confidence level in the office market rose to 6.5, up 10% from a year ago (at 5.9).
The post SIOR: Undersupply Begins Catching Up with Industrial, While Office Rebound Continues appeared first on Connect CRE.
Gillian Executive Search is a leader in Industrial Development, Financing, Design and Construction recruiting. www.gessearch.com