Cushman & Wakefield’s recently released Industrial Construction report reveals that demand is slowing as construction completions peak, setting the stage for a return to a more balanced market. In Q1 of this year, 129 million square feet of new construction was delivered – an increase of 40% from the same time last year. However, starts were down 60% from Q1 2022 and 34% from Q4 2022.
In response to moderating demand levels, developers and owners have begun pulling back on launching new projects in order to avoid potential oversupply in some markets and submarkets. “We are now entering a cyclical reset after two years of unprecedented demand,” said Carolyn Salzer, director at Cushman & Wakefield Americas Head Of Logistics & Industrial Research.” The space under construction is nearly four times what it was at the end of 2007.”
