Due to various factors, including high interest rates and inflation, reduced sales and leasing volumes was the trend for the industrial market in the United States in 2023, says a new report from JLL that evaluates the state of the industrial market in the country and forecasts the year ahead.
Vacancy rates increased 230 basis points since 2022 to end up at 5.7 percent at the end of 2023.
Rental rate growth rose 12.3 percent year-over-year, and occupiers are using caution when signing a lease deal, but JLL writes that the outlook for 2024 is still positive as pent-up demand from occupiers comes into the forefront of the market.
Preleasing rates in the fourth quarter of 2023 were at 33.8 percent, up 3.4 percent quarter-over-quarter but significantly down from the third quarter 2021 preleasing rate of 69.6 percent.
Manufacturing projects make up a significant portion of new builds, comprising 10.5 percent of the total of industrial assets under construction
