rreef research state of the us industrial market global gateway & national distribution hubs dominate number 49 july 2006 introduction improved rapidly last year near record demand paired with a relatively modest supply pipeline resulted in tightening conditions vacancy rate dipped 140 basis points ending 2005 at 9 reaching single digit level for first time since 2001 continued economic expansion vis à robust consumer and business spending as well surging trade flows supported over 280 million square feet positive net absorption increased construction costs competitive rent levels held speculative development check notable metro exceptions being chicago riverside this report we summarize current discuss its outlook based on underlying trends is organized into several sections following highlights key drivers that underpin real estate fundamentals then impact expanding international regional metropolitan markets prospects specific property types are presented
