Market Reports
Industrial Pipeline Slows as Deliveries Continue to Outpace Construction Starts
After two years of record-level deliveries, the industrial development pipeline has slowed, but the long-term outlook remains bright.
Office Market Distress Persists Amid Rising Defaults and Maturing LoansÂ
Distress in the office market persists with over $260 billion in office loans maturing and a growing delinquency rate.
Industrial Valuations Rise Amid Normalizing Demand and Muted Transaction Volume
Industrial valuations are rising despite market shifts, with the U.S. average sale price reaching $142 per square foot as of May.
Sales Activity Remains Slow as Discounted Office Sales Jump to 30%Â
As of May this year, there have been 600 office sales, an increasing number of which are being sold at discounts.
Industrial Vacancies Normalize as High Inflation and Costs Slow Demand
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 Distressed Office Market Continues to Unfold Amid Stagnating Demand and Falling Property Values
In March, several markets had average DSCRs below 1.0, including Brooklyn (0.81), Chicago (0.90) and Cleveland (0.96), CommercialEdge shows.
Historic Levels of New Supply Push Industrial Vacancy Rates Higher in Q1 2024Â
The industrial vacancy rate was 5.2% in March across the U.S., up 20 basis points from the previous month.
Q1 2024 Office Sales Dip to $5.4 Billion, 17% Below Last Year’s Figure
Office sales continued to wane in Q1 2024 as companies embraced remote and hybrid work and re-examined their office footprints.
Industrial Sale Prices Hold Firm Amid Normalizing Demand and Shifting Capital Markets
Despite the decline in sales over recent quarters, the average sale price of industrial properties has remained high, increasing by 9.6% quarter-over-quarter and 2.0% year-over-year.
U.S. Office Market Continues to Navigate Demand Shifts
As the office market navigates trends shaping the sector in recent years, we anticipate an uptick in distress activity and discounted sales.
