Rents are breaking records, but the construction pipeline is, too. As of Q4, there were 360.7 million industrial square feet under construction with 94% of it intended for warehouse and distribution uses, according to the report.
The South has the most square footage on the way. Record-breaking construction could lead logistics managers to conclude that the market is headed for oversupply. But the ratio of custom builds to speculative construction suggests more of this new construction already has lessees than in previously hot periods for the market, Jason Tolliver, managing director for investor services at Cushman & Wakefield, said via email.