The industrial sector remains the prime beneficiary of the numerous technological shifts occurring throughout the economy. E-commerce continues to fuel demand for distribution and warehouse space in the national industrial sector. The Wichita market remains focused on the aerospace cluster, advanced manufacturing and the growing advanced materials sector to sustain and grow the industrial segment. The current supply pipeline is to remain about the same as it has over the past couple of years, with over 726,000 square feet under construction at the end of the first quarter and many new large developments announced. Net absorption is expected to occur at a steady pace, resulting in lower vacancies around 6 to 7 percent. Average asking rental rates grew to $4.38 per square foot for general industrial space and $10.26 per square foot for flex space as of the end of the first quarter. This growth will accelerate further as the market continues to tighten through 2018. Employment growth has not been reflective of renewed vigor in the industrial sector, however, highlighting the influence of other industries such as technology. The industrial sector’s outlook is bright since increased emphasis on aerospace production and advance manufacturing shows no sign of abating. Of …
