United States Industrial Market Dynamics - Q4 2024

The industrial sector finished 2024 with tenants continuing to exercise prudence by postponing significant commitments amid persistent ambiguities in the market. With new deliveries coming online vacant, the vacancy rate crept up to 7.1%. Due to the influx of new deliveries and slower occupancy gains, rents contracted by $0.04 per s.f. from the previous quarter to $10.00 per s.f.

• Net Absorption: Net absorption fell by 35.1% year-over-year with 140.4 million s.f. absorbed with 31.8 million s.f. of that occurring in Q4.

• Vacancy: The vacancy rate surpassed 7% for the first time since 2014, settling at 7.1%.

• Rental Rates: Rental rates contracted slightly in Q4, settling at $10.00 per s.f.