VACANCIES at United States industrial properties, including distribution centers and warehouses, rose to a two-and-a-half-year high in the third quarter as imports declined, cutting demand, and new construction boosted available space.

The average industrial vacancy rate in the three months to September 30 was 8.1 percent, up from 7.7 percent in the previous quarter and 7.1 percent a year earlier, real estate brokerage Cushman & Wakefield reported.

The rate was the lowest since the first quarter of 2006, when it was also 8.1 percent.

Demand for industrial space is being hurt by the slowing US economy and falling imports. US imports decreased 2.4 percent to US$223.9 billion, the Commerce Department said last week. The economy will shrink at a 0.2-percent annual pace in the third quarter and 0.8 percent in the last three months of 2008, according to the median estimate of 52 economists surveyed earlier this month by Bloomberg News.

"Because the economy is where it is, your activity levels are slowing down pretty dramatically just from a leasing standpoint," said Michael McKiernan, Cushman's executive managing director for industrial brokerage. Industrial "tenants are, like the capital markets and stock markets, very concerned about what's coming next. So they're sitting on their hands."

About 9,197.4 billion square meters of industrial space have become available this year, a 35-percent increase over a year, Cushman said.