According to Real Estate News Utah in their article, “Industrial Market Still Struggling to Recover”, even with promise shown in the industrial market in the second quarter of 2009 (the square footage activity nearly doubled), the third and fourth quarters returned to the 2008 trend of a downward trend, largely because of limited funding.
Lease activity declined by 25% in 2009 and vacancies increased slightly. Industrial sales transactions fell by 22% in the past two years and very few land transactions and construction projects occurred.
The pace at which the market is able to recover by increasing credit and trimming unemployment is dependent on banker’s willingness to loosen their purse strings. Lease activity is expected to rise by up to 10% in 2010 and the increasing availability of sublease space is a good sign. Still, the struggling of the industrial industry will continue through 2010 and the lack of available credit will place a stranglehold on construction and new projects.
Read the full article from Real Estate News Utah here.