Industrial

The industrial sector will shift in 2025, as the supply boom driven by the pandemic is fading away and vacancies are starting to stabilize.

Following several years of hot demand, industrial real estate saw normalization in 2024 with balanced demand and reduced supply.

Automation and artificial intelligence are reshaping industrial real estate, driving demand for assets supporting high-tech systems.

East Coast port strike resolutions and reshoring trends are shifting U.S. trade dynamics, driving changes in industrial demand and supply.

The e-commerce surge waned last year, reducing demand for industrial space. However, in 2024, this sector has rebalanced and is growing steadily.

The Southern California industrial markets saw signs of cooldown after years of growth, with increasing vacancies and slower rental growth.

After two years of record-level deliveries, the industrial development pipeline has slowed, but the long-term outlook remains bright.

Industrial valuations are rising despite market shifts, with the U.S. average sale price reaching $142 per square foot as of May.

The U.S. industrial vacancy rate was 5.2% at the end of April, unchanged month-over-month as demand for space has been moderating.

The industrial vacancy rate was 5.2% in March across the U.S., up 20 basis points from the previous month.