and surging rents has bolstered the confidence of industrial property developers who are now building almost half of their projects without a tenant locked in first.
“For 2023, approximately 45 per cent of new supply additions will stem from speculative facilities, while as it stands, almost 35 per cent of facilities due for completion in 2024 are speculative, albeit this will likely increase as we progress into next year,” Mr Crawford said. This higher proportion of uncommitted stock entering the market has lifted the US vacancy rate from a low of 2.8 per cent early last year to its current level of 4.7 per cent, which is forecast to rise above 5 per cent next year .US rental growth. Average rents increased 12.8 per cent in the year to September, down from 47.8 per cent in the year to June 2022.
However, because of much higher leasing pre-commitments – 72 per cent of supply additions until the end of 2024 are committed and 92 per cent in 2023 – Cushman concluded that Australia will not experience the same influx of unleased supply, ensuring vacancy rates remain tight,“While not all this commitment is expansionary, backfill leasing options that are vacated will be met with strong demand as current inquiry on the east coast exceeds 2.