The U.S. industrial market experienced a year of stabilization in 2024, with demand normalizing and development slowing after a period of unprecedented growth, as shown in our latest industrial report. Two years ago, national vacancies were below 4%, with the hottest markets under 2%. This year, the national vacancy rate rose to 7.5% and nearly every market saw notable increases in vacant space as new supply outpaced demand. Year-to-date, 330.7 million sq. ft. of space has been delivered, down from the 1.1 billion sq. ft. completed between 2022 and 2023.
Other key highlights:
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National in-place rents rose 6.9% Y-o-Y to $8.25 per sq. ft.
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Industrial sales totaled $54.6 billion, on track to match 2023’s total volume, while the average sale price grew 2.7% Y-o-Y to $128 per sq. ft.
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The industrial pipeline grew for the first time this year, increasing 2.3 million month-over-month, to 361.1 million sq. ft.
Regional highlights:
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Miami recorded the highest rent growth nationwide, with in-place rents increasing 11.1% Y-o-Y to $12.11/sq. ft.
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Kansas City reported the lowest industrial vacancy rate nationwide in November 2024, at just 3.3%
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New Jersey posted one of the widest lease spreads nationally, with new leases signed over the past year averaging $4.11 per sq. ft. above in-place rents.
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Phoenix continued to lead the nation in construction activity, however, its pipeline shrank by over 4 million sq. ft. M-o-M to 24 million sq. ft in November
For more in-depth market insights, including vacancies and asking rates across the top 30 industrial markets, read our report here: https://www.commercialedge.com/blog/national-industrial-report/
