Strong new leasing activity and fewer construction completions limited an increase in the overall industrial vacancy rate to just 10 basis points (bps) in Q3 2024, the smallest rise in two years, the CBRE report said.
The e-commerce share of total US non-auto retail sales—a key indicator of demand for warehouse space—rose for the seventh quarter in a row in Q3 2024 to 23.2 per cent, CBRE said.
Such share is expected to reach 30 per cent by Q4 2029.
Strong new leasing activity and fewer construction completions limited a rise in industrial vacancy rate to just 10 basis points in Q3, the smallest in two years.
Robust demand from third-party-logistics (3PL) providers brought year-to-date leasing activity to 621.4 million sq ft, up by 5.2 per cent year on year (YoY).
Although net absorption increased for the second consecutive quarter to 53.9 million sq. ft., total year-to-date net absorption of 122.1 million sq ft was 38 per cent lower YoY, the CBRE report said.
Average asking rent declined by 0.8 per cent quarter-on-quarter and by 2.4 per cent YoY to $11.12 per sq ft, the first time since Q3 2011 that rents have declined for two consecutive quarters.
New construction fell to a post-pandemic low of 36.4 million sq ft in Q3. The decrease will lead to a decline in available first-generation space in 2025 and 2026.
Texas industrial markets outperformed the rest of the country in Q3 2024, with Houston, Dallas-Ft. Worth and Austin ranking in the top ten for net absorption.
Fibre2Fashion News Desk (DS)
