CommercialEdge just released its February industrial report analyzing the U.S. industrial market at the beginning of 2023, and I wanted to share it with you.
We found that of the 63 markets covered, 44 reached a lease spread greater than 10%. Of these, 16 markets had spreads wider than 20% in January, the biggest being in port markets and logistics hubs.
Key findings from our report:
- National industrial in-place rents averaged $7.10 per square foot in January, up 6.9% year-over-year.
- The national vacancy rate stood at 4.0%, up 10 basis points month-over-month.
- Nationwide, 691 million square feet of industrial space was under construction.
- Industrial transactions totaled $1.1 billion at an average sale price of $125 per square foot.
- Western markets posted the widest lease spreads, with the Inland Empire registering a spread of 28.2%.
- Columbus recorded the second lowest vacancy rate nationwide at 1.7%.
- Dallas led the nation in development with a 61.6 million-square-foot pipeline.
- New Jersey’s sales volume was the second highest among leading markets at $149 million, surpassed only by Bay Area’s $169 million.
For more insights and market-specific data, check out our full report here: https://www.commercialedge.com/blog/national-industrial-report/