The distress for warehouse users continued in the first quarter with the regionwide vacancy rate falling to a crippling 0.57%, down from 0.62% in the fourth quarter, and 2.14% a year ago. Warehouse rents jumped by $0.63 per square foot (psf) during the quarter to register $16.78 psf, and up $2.09 psf from year-ago levels. Higher rates are hardly news, as warehouse rents across North America continue to skyrocket. In a somewhat novel twist, industrial rents are increasingly in excess of suburban office rents. Far from the natural order of things. With the sticker shock that comes from an impending lease renewal, increasing numbers of warehouse users are now giving the strata (ownership) market serious consideration. Rising interest rates, however, may put a damper on ownership, but to date, this has not been the case. New supply registered a very substantial 1.3 million square feet during the quarter, but most was leased/sold at completion.