After increasing rapidly during the first two years of the pandemic, the average sale price of an industrial property has leveled off in recent years, according to Yardi Matrix. Between 2019 and 2022, the national average sale price of an industrial property grew 54 percent, but it increased only 5 percent between 2022 and 2024. Industrial transactions totaled $6.1 billion during the first two months of the year, with properties trading at an average of $127 per square foot.
Tariffs may be a long-term positive for the industrial sector, if they achieve the administration’s goal of increasing reshoring of manufacturing, says the report. It is expected the tariff uncertainty will lead to delayed leasing decisions from industrial occupiers. Those on steel and aluminum will increase construction costs and may lead to delaying or cancellation of planned projects. While it will take time to know the full impact, the new-development pipeline was already entering a lull, as the his
