Regionally, the Southeast multi-tenant industrial sector led all markets with $5.2 billion in third-quarter transactions, representing 29.4% of national volume.
According to Newmark’s National Industrial Market Conditions and Trends Report, there will be continued resilience but on a muted scale for industrial assets in 2024. Unpredictability in the global supply chain will drive long-term demand for industrial space due to the need for diversified sourcing and ports of entry,
A new method developed by NAIOP of ranking industrial markets in both sales volume and volatility claims to offer new insight into risks that may help investors and developers create better strategies around market entry and exit.
Although IOS is seeing growing demand in line with the broader industrial property boom, it is still a volatile market with demand and rents accelerating faster in upcycles but also performing worse during economic downturns. And one of the reasons IOS tends to suffer disproportionately is the overall weaker tenant profile.
Although e-commerce-fueled bulk logistics space is the darling of the current cycle, manufacturing stimulates industrial space demand for both factories and warehouses. Investors seeking higher cap rates are finding them in industrial spaces serving manufacturing. CLICK ON THE HEADLINE FOR MORE