1. F
INDUSTRIAL
RESEARCH
FACT OF THE WEEK
MAY 15, 2012
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U.S. RETAIL SALES VS. INDUSTRIAL VACANCY RATE
Source: Cushman & Wakefield Research, Moody’s Analytics. Only markets tracked by Cushman & Wakefield offices
are included in this analysis.
Retail sales continued to climb and totaled $1.2 trillion in the first quarter. This marks
the twelfth consecutive quarter of retail sales growth. With home building picking up,
building material and garden supply dealers experienced a 13.7% annual increase,
according to the U.S. Department of Commerce. Meanwhile, furniture stores and the
clothing and apparel sector advanced by over 10.0% compared to this time last year.
Reflecting these improvements, retailers and 3PLs continue to lease more space to keep
up with demand. In the first three months of the year, 69.7 msf of new leases were
signed, the highest level since 79.3 msf of leasing activity was recorded in the first
quarter of 2007.
With increased demand, the overall vacancy rate declined to 9.0%, its lowest level since
the end of 2008, when the overall vacancy rate was 8.3%. Since the beginning of 2011,
industrial users have absorbed 99.4 msf of manufacturing and warehouse/distribution
space.
With demand outpacing supply, new speculative development is back on the horizon. At
the end of the first quarter, 5.9 msf of new supply was added to the inventory and 3.9
msf of that were built on a speculative basis. Approximately 24.9 msf is currently under
construction and proposed for completion this year, which would be an increase from
the 20.5 msf completed in 2011.
James.Breeze@cushwake.com (909) 942‐4655

2. INDUSTRIAL FACT TEAM
Tina Arambulo, Los Angeles Ted Harrison, Phoenix
James Breeze, Los Angeles Steve Harriss, Dallas
Corey Deslandes, New Jersey Robert Hoefer, Houston
Neil Hamilton, Orlando Amanda Ortiz, Chicago
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