Industrial
2023 Industrial Sales Total $52 Billion, Roughly Half of 2022 Volume
Due to tighter underwriting policies and more expensive capital, transaction activity will continue to diminish in 2024.
2023 Marks Year of Shifts and Stabilizing Trends in U.S. Industrial Sector
Port activity normalized, manufacturing surged in North America, and interest rate hikes dampened transaction activity and new development.
Industrial Sector Maintains Momentum Despite Uptick in Vacancy Rates  Â
Industrial vacancy rates rose 70 basis points from 3.9% in January 2023 to 4.6% in October but remained unchanged month-over-month.
Industrial Transactions Still Muted as Bid-Ask Gap Holds Firm Â
Sellers have yet to readjust price expectations, as buyers are unwilling to pay high prices amid expensive and limited financing options.
2023 Industrial Construction Starts Dip One-Third from Last Year
Competition for industrial space will increase in 2024 and 2025, but we anticipate construction starts to pick up again in 2026.
Industrial Sector Pinched by Interest Rate HikesÂ
As capital has become scarcer and more expensive, industrial construction starts and sales have slowed down in 2023.
Industrial Sales Volume Reaches $21.2B at the End of Q2
The sales volume dropped significantly compared to the $55 billion recorded during the same period last year.
Industrial Development Continues to Slow as Demand Normalizes
New starts continued to moderate across top industrial markets in the U.S., with few exceptions, such as Phoenix and Dallas.
Industrial Development Slows as Sector Adapts to Economic Conditions
While the amount of space under construction remained high, new starts have started to slow, reflecting the current economic issues.
With Distress on the Rise, How Worried Should We Be?
Rising interest rates have pushed loan coupons higher, lenders are cutting back to varying degrees and property fundamentals are weakening.
