IRR-Wilmington Mid-Year Viewpoint 2015 Local Market Report - Industrial
The industrial market continues to recover from the impact of recessionary economic conditions accompanied by the loss of two of the region’s major employers/manufacturers, GM and Chrysler, and the just-in-time suppliers serving these manufacturers. The positioning of the market along the I-95 corridor allows for relatively efficient logistical access to major metropolitan areas along the Eastern Seaboard. After spiking to mid-double digits in 2009, vacancy has trended downward and is currently hovering in the high single digits.
Market rent has gradually trended upward since 2009, and is expected to continue to trend upward albeit at a pace that mirrors inflation. Absorption has been positive overall since 2009, and with the exception of the 1.2 million SF Amazon.com fulfillment center, 400,000 SF Johnson Controls production facility, and 200,000 SF distribution facility for FedEx, no major new construction has occurred in the market.
As a result of the gradual improvement in occupancy, very few large blocks of vacant space are available in newer, modern industrial buildings; a limited number of buildings currently offer over 75,000 SF of contiguous space, with the pool of buildings offering over 100,000 SF of contiguous space restricted to less than a handful.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.