According to the report’s authors, the first half of 2010 saw a significant decline in the dynamics of new supply. This is a consequence of developers withdrawing from speculative projects in 2009 and focusing primarily on BTS-type projects. However, in the first half of 2010, construction began on several speculative facilities. A large amount of vacant space in existing facilities led to a further decline in rental rates.
According to Maciej Chmielewski, Partner and Director of the Industrial and Warehouse Space Department at Colliers International, due to the large amount of unleased space, developers will only start new projects after signing the necessary pre-lease agreements or in locations with low availability of warehouse space. The expert expects rental rates to stabilize.
More information and data can be found in the Colliers International semi-annual report available here.