The industrial sector has struggled to regain confidence, but there may be a silver lining coming in 2025.
The vacancy rate in the U.S. industrial market rose to 6.6% in the third quarter of 2024, but it grew at the slowest pace since 2022, according to a report by Colliers. Although vacancy is expected to keep ticking up, Colliers projects it to peak in mid-2025 at about 6.8%, then start to decline.
Following the pandemic boom, the industry has struggled to keep up with the record pace of construction, but the pipeline has shrunk dramatically.
After hitting a record 711M SF in 2022, total space under construction has dropped by 53%, now sitting at 331M SF, according to the report. New supply delivered in Q3 totaled 76M SF, 54% below the 163M SF that delivered in the same quarter last year...
RSK: This is very interesting....a slow down in construction but rates remain steady with a 2-7% increase. Tenants just are not inking leases at this time...but I am betting the new regime in the White House may change all that. BE A CONTRARIAN?
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- - Volume: 24 - WEEK: 47 Date: 11/19/2024 3:38:39 PM -