MARKET TRENDS
- Vacancy saw a year-over-year increase of 170 basis points (bps), due to the 11.5 million square feet (msf) of new deliveries added to the market in 2024. Looking forward, supply will continue to outpace demand over the near term.
- Asking rental rates for industrial space decreased by 2.4% over the past year and averaged $11.68 per square foot as of Q4 2024. Going forward, asking rents will likely continue to soften as new deliveries come online and vacancy rises.
- While net absorption has softened in Q4 2024, it is expected to pick back up. Given the amount of leasing observed during the quarter, we expect absorption to trend near the five-year average. Overall, absorption was positive for 2024.