The 7-Million-Square-Foot Warning: Why Industrial Sublease Space is Exploding
Industrial Tenant Defaults Rising: Small-Space "Midnight Moves" and Growing Sublease Supply
On the Industrial Advisors podcast, Bill Condon and Matt McGregor discuss a recent rise in tenant defaults over the past six months, especially in smaller industrial spaces, drawing parallels to the post-2008 era when small tenants drove vacancy spikes (flex vacancy rising to 22% from 4%). They attribute today's defaults to COVID-era leasing decisions, tenants taking more space at higher rents amid inflated sales, and supply-chain constraints - followed by economic softening and supply-chain…
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