The country’s industrial real estate sector is showing signs of some recovery if the latest report by commercial real estate group Jones Lang LaSalle is any indication.

According to the report, which monitors 38 key industrial markets in the U.S., national average vacancy rates slipped from 10.6% in the first quarter to 10.4% the following quarter. Craig Meyer, managing director and leader of Jones Lang LaSalle’s Logistics and Industrial Services group, said that at a time of high unemployment rate, the development is worth noting.

The average net absorption across the country for the April-June period was 11.1 million square feet. But so far this year, the average net absorption is at 7.4 million square feet. New Jersey and other markets that serve as supply chains for the industry showed promise of recovery. In New Jersey, net absorption stood at 4 million square feet following a slide of 60 basis points in vacancy rates. Inland Empire, also a major market, registered the same absorption rate. In total, around 66% of the markets tracked by the report showed a positive net absorption.

Meyer, however, cautioned that many industrial landlords, tenants, and investors are looking back over their shoulders in fear of a double dip recession. They fear that declining consumer confidence, the fading impact of the federal stimulus support, and worldwide economic volatility will cripple any chance of a recovery, he said.

“While we can report some overall positive news for the sector, we are still very much at the mercy of this precarious economy,” Craig added.

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