Industrial Market Statistics | Q4 2024

The gap between new supply and tenant demand narrowed during 2024 as developers stepped off the gas, and new occupancies picked up in the year`s second half. The U.S. industrial vacancy rate increased by 126 basis points to 6.8% and is nearing its peak as construction activity normalizes to pre-pandemic levels below 300 million SF. While rent growth decelerated, it remained positive at 5% year-over-year, though some markets experienced rent declines following a period of extraordinary growth...

The U.S. industrial vacancy rate is nearing its peak as construction activity normalizes to pre-pandemic levels and demand gradually recovers. Vacancy increased during all four quarters of 2024, climbing by 126 basis points to 6.8% — the highest level since 2015. The increase, however, was more moderate compared to the previous the year, when vacancy jumped by 194 basis points.

Although vacancy rose by just 42 basis points in the second half of 2024, some regions and markets experienced faster increases than others. The West region saw the largest jump, with vacancy climbing 220 basis points to 7%, while the Midwest had the smallest increase, up just 29 basis points to 5.3%. The highest vacancy rate was recorded in the South region, reaching 8%....