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Worst May be Over for Warehouse Market

Published Thursday, October 01, 2009

The nation’s industrial market has been jolted by rising vacancy rates and declining net absorption, but economist Leonard Sahling of Denver-based ProLogis Research Group believes the worst is over, and that net absorption will turn positive by the fourth quarter. Even so, developers aren’t likely to build new warehouses anytime soon. The overall vacancy rate for bulk distribution space rose from a cyclical low point of 6.8% in the first quarter of 2007 to a high of 10% by the second quarter of 2009, says Sahling, who is first vice president of the research group. The change ...

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