Vacancies are up and construction is down, reflecting worsening conditions for commercial real estate, according to Denver-based developer ProLogis.
New starts of bulk distribution facilities fell 44 percent, from 29 million square feet in the first quarter of 2008 to 16 million square feet in the second quarter. Second quarter starts were off 60 percent from the 40 million square feet launched during the fourth quarter of 2007.
Meanwhile, vacancies in ProLogis's top 30 U.S. markets in the second quarter of 2008 climbed to 8.3 percent, compared with 7.8 percent at the end of 2007, a 6.4 percent increase in six months.
Asking rents also declined 0.3 percent during the second quarter of this year.
ProLogis owns, manages or operates 542.3 million square feet of property worth more than $40 billion in 132 markets in North America, Europe and Asia.