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 conditions and demand drivers—including ports, e-commerce and manufacturing—at both national and market-level geographies.
A few noteworthy facts from our research:
- After a sluggish first half, Q3 2024 leasing improved to 4.3% below Q3 2019 levels, with tenant activity expected to pick up in the coming quarters post-election.
- TEU volumes are up 14.8% year-to-date as shippers pulled freight forward ahead of the ILA strike, a trend likely to continue amid potential tariff escalations.
- Logistics providers are leasing large spaces in port markets, fueled by tariff concerns and e-commerce growth, including Temu's 455 million app downloads in 12 months.
- The construction pipeline is down 56% from its 2022 peak, now near 2019 levels, with California's AB-98 to limit supply in key markets like the Inland Empire.
- A large mark-to-market looms on leases signed in recent years given 70% rent growth in five years, while some 2023 leases may now be above market.