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:
- Inflation-adjusted year-to-date retail sales are down 0.9% from 2023, hindered by higher prices and interest rates, impacting the industrial absorption forecast.
- Vacancy has reached 7.1%, up 330 basis points from mid-2022. Sublease availability is rising, but the slower pace indicates the market is nearing a trough.
- Occupiers remain challenged in certain segments, including small bay, spaces over 1.0 million square feet in specific markets, cold storage, and heavy power needs.
- Savills Research predicts it will take an average of 2.5 years to clear the current space glut and return to 2019 vacancy, with significant regional variations.
- Year-to-date TEU volumes are up 12.4%, pushing ocean freight rates higher amid supply chain disruptions before the East Coast labor deal expires on September 30.