Logistics firms sustain market momentum amid rising vacancy

In the final quarter of 2024, vacancy rose by 30 basis points (bps) to 7.1%, marking the eighth consecutive quarter of increases. Asking rents declined by 1.4%—the third straight quarter of decreases—as the market continues to reprice. However, rents remain 108.8% higher than five years ago. Supported by expanding logistics firms, net absorption stayed positive but modest, totaling 2.6 million square feet (msf) for 2024. This figure is more than double last year’s total but 65.8% below the five-year average. For the past two and a half years, deliveries have consistently outpaced net absorption, leading to double-digit vacancy rates in four submarkets: Hudson Waterfront, Exit 12, Exit 9 and Exit 7A/Trenton.

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