CommercialEdge just released its June industrial market report analyzing key trends, such as the sector’s cooldown in development, in light of the prevailing high-interest rate environment and alongside the ongoing normalization of demand for industrial space.
From January to May of this year, a mere 109.6 million square feet of new industrial space commenced construction, significantly lower than the 240.5 million square feet that broke ground during the same period in 2022. However, key fundamentals remained steady.
Key findings from the CommercialEdge industrial development report:
- National industrial in-place rents averaged $7.29/square feet in May, up 7.4% Y-o-Y
- The national vacancy rate stood at 4.3%, up 20 basis points month-over-month
- Nationwide, 619M square feet of industrial space was under construction
- Industrial transactions totaled $16.3B at an average sale price of $134/square foot.
- The Inland Empire recorded the largest sales volume nationwide, totaling $1.9B
- Cincinnati registered the highest sale price in the Midwest, with properties trading at $166/square foot.
- Dallas – Fort Worth led construction in the South, with 54M square feet underway
- Boston and Bridgeport registered the widest lease spreads in the Northeast
For more insights and market-specific data, check out the full report here: https://www.commercialedge.com/blog/national-industrial-report/