During 3Q, vacancy increased by 10 basis points to 4.0% from 3.9%, which was an all-time low. Inflation and interest rate hikes are weighing on industrial occupiers. Leasing activity fell below 200 million square feet (msf) for the first time in eight quarters, while swelling under construction pipelines in Phoenix, Dallas-Fort Worth and Atlanta now exceed 50 msf. As a result, after spiking by as much as 40% in some markets over the past year, rents will grow more modestly going forward. Meanwhile, the recent passing of the Inflation Reduction Act and Chips and Science Act provide new incentives for onshoring of manufacturing.

Download our complete Q3 2022 U.S. Industrial Market Update below to get the full picture and see how your market is performing in this rapidly evolving environment.