Rent growth for the U.S. industrial market is projected to moderate to 8 percent in 2024, said a report from CBRE that looks at the year ahead for the sector.
New deliveries will be concentrated in the first half of the year and will fall off in the second half, delivering altogether half the deliveries that took place in 2023. Those trends will lead to a mid-year 5 percent vacancy rate that then drops slightly as less deliveries come onto the market, said CBRE.
The report noted that supply-chain resiliency, ecommerce growth and population growth are key factors that will determine demand in the coming year.
As more companies put effort into building up resilient supply networks that ensure the timely delivery of goods, import locations and storage facilities near manufacturing operations will be increasingly sought.
A strong labor pool is critical to successful industrial operations. CBRE pointed to Memphis, Tenn.; the PA I-78/81 Corridor; Indianapolis;