Market Report
U.S. Industrial State of the Market
H1 2024
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Key Insights
1
Following the pandemic, there has been a sharp increase in vacancy rates, nearing 6.5% in Q2 2024.
2
Rent growth is predicted to drop below 2.5% in late 2024, a significant decrease from 3.5% in Q1 2024.
3
Entering Q3 2024, the construction pipeline shrinks with only 274M under construction. Due to the decrease in future deliveries, it is anticipated the vacancy rate will slowly return to 2021 levels.
Key Takeaways
- Balancing of Vacancy Rates: Following the pandemic, there has been a sharp increase in vacancy rates, nearing 6.5% in Q2 2024.
- Rent Growth: Rent growth is predicted to drop below 2.5% in late 2024, a significant decrease from 3.5% in Q1 2024.
- Construction Pipeline: Entering Q3 2024, the construction pipeline shrinks with only 274M under construction. Due to the decrease in future deliveries, it is anticipated the vacancy rate will slowly return to 2021 levels.
- Market Rent $/SF: Q2 2024 wrapped up with an average rent of $10.21 per SF, outpacing the previous 4 quarters. It is forecasted to continuously grow over the next 12 months.
10
%
Balancing of Vacancy Rates
3
%
Rent Growth
