Even though a spate of new construction in 2023 brought a record 413 million SF of industrial space to market, it is expected that abundant supply will be short-lived. The most active occupiers of the space were general retailers and wholesalers, which accounted for 36% of all lease transactions.
The continued demand for industrial space is keeping market fundamentals healthy across the U.S. The national average rent for in-place leases stood at $7.12 per square foot in February, growing 6.9% over year-ago figures.
Accelerated rent growth nationwide in the industrial real estate sector might not be so much tied to inflation, but rather vacancy rates, according to a new report from Cushman & Wakefield.