The fourth-quarter Market Advisor, prepared here at Miller Industrial Properties, is available for download and it captures the surprising turnaround we experienced at the end of 2019. In a year with local gross absorption described as “modest,” “average,” and “dull,” Q4 was truly a record quarter.
Massive Gross Absorption
From the report:
“We were on track for an annual gross absorption almost 35% below the previous five-year averages. And then we had Q4. The Reno-Sparks industrial real estate market absorbed more space in Q4 2019 than in any other quarter in our decade of record keeping, and probably much longer. At just under four million square feet absorped, it was definitely a record quarter. This performance propelled the annual statistics from potentially 35% below average to 15% over average – an annual 50% turnaround from one quarter’s results.
The impact of this massive gross absorption was compounded by a very low return-to-market of inventory – about one-half of normal quarterly returns – resulting in a net absorption over three times the average.”
Get the full story with your free copy of our Market Advisor. It’s available for download now.