{"id":21329,"date":"2018-12-01T05:00:19","date_gmt":"2018-12-01T13:00:19","guid":{"rendered":"https:\/\/www.yardi.com\/blog\/?p=21329"},"modified":"2026-02-22T15:28:11","modified_gmt":"2026-02-22T23:28:11","slug":"industrial-strength","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/industrial-strength\/","title":{"rendered":"Industrial Strength"},"content":{"rendered":"<p><a href=\"https:\/\/www.yardimatrix.com\/\" target=\"_blank\" rel=\"noopener\">Yardi Matrix<\/a> took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.<\/p>\n<p>Indications of the sector\u2019s strength include:<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-21330\" src=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653-300x200.jpg\" alt=\"\" width=\"450\" height=\"300\" \/><\/p>\n<ul>\n<li>Strong demand for space driven by year-over-year e-commerce sales growth of 15.4%<\/li>\n<li>Nearly 125 million square feet of industrial space coming online<\/li>\n<li>7% year-over-year rent growth<\/li>\n<li>A national vacancy rate below 5% in the first quarter, the lowest since 2010<\/li>\n<li>Commercial real estate-leading investment volume<\/li>\n<\/ul>\n<p>\u201cDemand is stronger than ever\u201d in every industrial subsector, the report says, with warehousing, manufacturing and flex space accounting for most of the occupancy gains. Demand was strongest in California\u2019s Inland Empire, followed by Chicago and New Jersey. The industrial sector continued to benefit from rising e-commerce sales, which totaled $120.4 billion in the second quarter alone and drove the need for distribution centers near dense population areas.<\/p>\n<p>Over 90% of the first half\u2019s new supply was warehouse and distribution space, with more than 238 million square feet of additional space under construction at mid-year. In markets where available land for development is scarce, developers focused on renovation and site remediation projects, expecting to recover costs with higher rents.<\/p>\n<p>Industrial rents continued to increase in most markets, spurred by the exceptional demand and lack of excess space in the top logistics markets. Rents averaged $6.29 per square foot at mid-year, up 7% year-over-year. \u201cExpect rents to further increase through 2018 as the quality of available inventory improves due to upgrades and addition of new space,\u201d the report says, noting that a slight deceleration might follow in 2019 as projects now under construction add to available inventory.<\/p>\n<p>The national industrial vacancy rate, 4.9% in the first quarter, was largely due to companies snapping up space before it was completed.<\/p>\n<p>Investment activity continued upward in the year\u2019s first half. Sales volume reached $39 billion, a 26% year-over-year increase and the largest growth rate among all commercial real estate sectors. Secondary and tertiary markets with available land for development, high population growth and easy access to transportation centers held particular appeal for investors.<\/p>\n<p>Read the <a href=\"http:\/\/www.yardimatrix.com\/Media\/Downloads\/File\/551-Fall2018YardiMatrixIndustrialOutlook?signup=false\" target=\"_blank\" rel=\"noopener\">full report<\/a>, titled \u201cExceptional Growth Driven by E-Commerce,\u201d which also includes in-depth examinations of core industrial markets Chicago, the Inland Empire and New Jersey.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs. Indications of the sector\u2019s strength include: Strong demand for space driven by year-over-year e-commerce sales growth of 15.4% Nearly 125 million square feet of industrial space coming online 7% [&hellip;]<\/p>\n","protected":false},"author":610,"featured_media":21330,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2791,4],"tags":[1703,157,608,134,1169],"class_list":["post-21329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-matrix","category-news","tag-cre","tag-economy","tag-industrial","tag-real-estate","tag-yardi-matrix"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Yardi Blog<\/title>\n<meta name=\"description\" content=\"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Industrial Strength\" \/>\n<meta property=\"og:description\" content=\"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardi.com\/blog\/industrial-strength\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Blog\" \/>\n<meta property=\"article:published_time\" content=\"2018-12-01T13:00:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-22T23:28:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joel Nelson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joel Nelson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/\",\"name\":\"Industrial Strength - Yardi Corporate Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg\",\"datePublished\":\"2018-12-01T13:00:19+00:00\",\"dateModified\":\"2026-02-22T23:28:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8\"},\"description\":\"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.yardi.com\/blog\/industrial-strength\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg\",\"width\":1000,\"height\":667},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.yardi.com\/blog\/industrial-strength\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.yardi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Industrial Strength\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\",\"url\":\"https:\/\/www.yardi.com\/blog\/\",\"name\":\"Yardi Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.yardi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8\",\"name\":\"Joel Nelson\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69\",\"caption\":\"Joel Nelson\"},\"description\":\"Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor\u2019s degree from Pomona College.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/joel-nelson-aa363113\/\"],\"url\":\"https:\/\/www.yardi.com\/blog\/author\/joel-nelson\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Yardi Blog","description":"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Industrial Strength","og_description":"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.","og_url":"https:\/\/www.yardi.com\/blog\/industrial-strength\/","og_site_name":"Yardi Blog","article_published_time":"2018-12-01T13:00:19+00:00","article_modified_time":"2026-02-22T23:28:11+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg","type":"image\/jpeg"}],"author":"Joel Nelson","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Joel Nelson","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/","url":"https:\/\/www.yardi.com\/blog\/industrial-strength\/","name":"Industrial Strength - Yardi Corporate Blog","isPartOf":{"@id":"https:\/\/www.yardi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage"},"image":{"@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage"},"thumbnailUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg","datePublished":"2018-12-01T13:00:19+00:00","dateModified":"2026-02-22T23:28:11+00:00","author":{"@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8"},"description":"Yardi Matrix took a close look at the U.S. industrial real estate market\u2019s performance in the first half of 2018 and found plenty of positive signs.","breadcrumb":{"@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.yardi.com\/blog\/industrial-strength\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/#primaryimage","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg","width":1000,"height":667},{"@type":"BreadcrumbList","@id":"https:\/\/www.yardi.com\/blog\/industrial-strength\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.yardi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Industrial Strength"}]},{"@type":"WebSite","@id":"https:\/\/www.yardi.com\/blog\/#website","url":"https:\/\/www.yardi.com\/blog\/","name":"Yardi Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.yardi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8","name":"Joel Nelson","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69","caption":"Joel Nelson"},"description":"Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor\u2019s degree from Pomona College.","sameAs":["https:\/\/www.linkedin.com\/in\/joel-nelson-aa363113\/"],"url":"https:\/\/www.yardi.com\/blog\/author\/joel-nelson\/"}]}},"jetpack_featured_media_url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/11\/shutterstock_426500653.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/21329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/users\/610"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/comments?post=21329"}],"version-history":[{"count":2,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/21329\/revisions"}],"predecessor-version":[{"id":26510,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/21329\/revisions\/26510"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media\/21330"}],"wp:attachment":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media?parent=21329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/categories?post=21329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/tags?post=21329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}