In 2023, the industrial sector is set to maintain its position as the darling of commercial real estate investment. The sector has benefited from long-term secular demand drivers and continuously strong underlying fundamentals in the past three years.

And in 2022, the industrial sector had 467.9 million square feet of net absorption across the country, the second-highest on record, according to JLL. Slightly more than 9 million square feet of vacant sublease space came online throughout 2022, bringing the year-end total to 33.2 million square feet. And some 632.3 million square feet was under construction at year-end, considered a record-breaking figure.

Prior to the COVID-19 pandemic, industrial real estate was already experiencing low vacancy on tight supply. Now, with the addition of U.S. businesses reshaping global supply-chain models to build resilience and maintain business continuity against any new disruptions, continued low industrial vacancy is expected in mo