Southeast Industrial Labor Report_Q1 2024

SOUTHEAST INDUSTRIAL CRE SUPPLY & DEMAND

ABSORPTION, NEW SUPPLY & VACANCY RATES

Overall Net Absorption Construction Completions Overall Vacancy Rate

ABSORPTION, NEW SUPPLY, & VACANCY RATES

Overall Net Absorption Construction Completions Overall Vacancy Rate

6%

180

MSF

160

167

5%

140

Demand has consistently outpaced supply in the Southeast with nearly 526.6 msf of positive net absorption registered since 2018, including more than 132.0 msf in 2022 alone. Development soared to record-breaking heights in response to consumer demand and population growth, peaking with 166.5 msf of new deliveries in 2023. Construction starts have been limited in the past year, which will allow time for users to lease up the new supply that remains available.

132

130

4%

120

121

100

3%

80

85

81

81

76

72

2%

69

60

67

59

40

1%

20

0%

0

2018

2019

2020

2021

2022

2023

Source: Cushman & Wakefield Research

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Cushman & Wakefield | Southeast Industrial Labor Report