Cushman and Wakefield industrial report says NOVA’s Route 28 submarket led the way
- October 22, 2012
Leasing activity in the flex and warehouse slowed during the third quarter, according to the Cushman & Wakefield Q3 2012 Industrial MarketBeat Report for Northern Virginia.
Yet, absorption remained positive for the year at 388,469 square feet, driven primarily by demand for warehouse/distribution space in the Route 28 North sub market.
Easterns Automotive Group signed the largest deal of the quarter, taking 138,920 square feet near Dulles International Airport. Easterns plans to move a good part of its operations from Manassas and Laurel, along with 100 employees, to the new facility in Loudoun County.
Overall, the flex/warehouse market was basically flat in 2012. According to the report, the average overall vacancy rate dropped by 10 basis points from the last quarter and is down 40 basis points to 14.3percent from the same period last year.
Cushman & Wakefield also noted that the entire Northern Virginia commercial real estate industry seems to be in a holding pattern. With sequestration threatening the Department of Defense budget, and the upcoming presidential election on Nov. 6, activity in the region “has come to a standstill,” the report said.