The United States industrial real estate market shows strong competition for space. Market trends indicate that if your organization faces a lease expiration or renewal in the near term, you should carefully consider your space needs.
The United States industrial real estate market is showing strong competition for available space. To get the whole story, download the full U.S. Industrial Real Estate Market Summary.
U.S. industrial real estate trends
Nationally, nearly the same amount of industrial space was absorbed this quarter than what was delivered to the market. Vacancy remains low and steady at 4.6%. In response to these dynamics, rental rates have been continuously rising, and real estate options for tenants are becoming increasingly limited in many markets.
Tenants who face a lease expiration or renewal within the next two or three years should carefully consider their space needs in the near term. The significant amount of new industrial construction in the pipeline may open up opportunities for those with a flexible real estate strategy.
Our full market summary report dives into the real estate trends for several key metros. Two markets — Detroit, Michigan, and Birmingham, Alabama — have vacancy rates lower than the national average of 4.7 percent, making competition for quality space even fiercer.
Fortunately for tenants, rents in each of the markets we compared are lower than the national average of $6.67 per square foot (SF). The highest of this select list were Dallas/Fort Worth, Texas, at $6.36 per SF and Detroit at $6.07 per SF.
Learn more in the full summary
Now more than ever, flex and warehouse space users must have a sophisticated understanding of the commercial real estate market as they develop a real estate strategy. Download the full U.S. Industrial Real Estate Market Summary report for more insights and trends.
Information contained in this report is provided, in part, from third-party sources, including Cresa, the U.S. Bureau of Labor Statistics, Real Capital Analytics, and CoStar Group. Even though obtained from sources deemed reliable, no warranty or representation, expressed or implied, is made as to the accuracy of the information herein.