We are pleased to release the latest State of the U.S. Industrial Market. This quarterly report provides key metrics on supply, demand and pricing of industrial real estate along with analysis of related economic drivers including ports, labor and reshoring at both national and market-level geographies.
A few noteworthy facts from our research:
- The year began with sharp leasing declines and a 60-basis-point vacancy uptick. Yet, rising port volumes and Amazon's expansion suggest early demand resurgence.
- Effective rent growth stalls in key industrial hubs, with declines in Greater Los Angeles as tenants negotiate lower starting rents and higher concessions.
- Buildings under 200,000 square feet typically exhibit lower vacancy due to their smaller share of recent construction, though variations by market remain.
- Construction starts hit a nine-year low in Q1, with the under-construction pipeline now 45% below its peak, setting the stage for a vacancy turnaround in 2025.
- Since 2021, EV batteries formed 35% of manufacturing job announcements but are recently waning, while clean energy sees an uptick.