JAMES REAL ESTATE SERVICES, INC.
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19
TOTAL INDUSTRIAL VACANCY AND ABSORPTION
WAREHOUSE & OFFICE SHOWROOM
Year
Number of
Properties
Year End
Total Indust.
Space (SF)
Net Space
Added
During Year
Year End
Vacant
Space (SF) % Vacant
Net Market
Absorption
(SF)
2000** 1,826 141,308,600
1,752,800 7,632,000 5.40% 3,051,200
1999 1,801 139,555,800
2,687,300
8,930,400
6.40%
2,833,200
1998 1,774 136,868,500
5,473,800
9,076,300
6.63%
5,007,600
1997 1,719 131,394,700
7,345,100
8,610,100
6.55%
4,442,300
1996 1,643 124,049,600
2,276,400
5,707,300
4.60%
2,270,100
1995 1,631 121,773,200
227,700
5,701,000
4.68%
2,104,000
1994 1,668 121,545,500
-1,792,600
7,577,300
6.23% 869,700
1993 1,699 123,338,100
-131,000
10,239,600
8.30% 404,200
1992 1,715 123,469,100
-213,100
10,774,800
8.73%
2,875,700
1991 1,753 123,682,200
-99,900
13,863,600
11.21% 285,900
1990 1,744 123,782,100
3,274,200
14,249,400
11.51%
5,923,600
1989 NA 120,507,900
991,400
16,898,800
14.02%
2,542,300
1988 NA 119,516,500
616,500
18,449,700
15.44%
1,669,800
Source: Frederick Ross & Company/James Real Estate Services, Inc.
Midyear**
Warehouse/distribution facilities have been the leader of the light industrial sector during the
economic expansion of the 1990's, although they appear to be flattening out in their performance curve.
Meanwhile, the other components of the national industrial real estate market, such as light assembly
plants and R&D facilities, are becoming healthier in their supply/demand fundamentals and investment
performance.
Conventional real estate wisdom is that industrial/distribution will benefit from e-commerce at
the expense of retail. Market dynamics here include the growth of born-on-the-web firms like
Amazon.com, the branching out of traditional retailers into e-commerce, and the development of
business-to-business commerce, which should benefit all industrial facility types including bulk
warehouses, manufacturing sites, and light assembly buildings.
