Some dynamics of logistical and industrial space leasing are feeling pressures of inadequate supply, according to a panel of NAI Global industrial and logistics real estate experts meeting virtually.
Although demand pacing ahead of supply had become expected by partway through the pandemic — industrial with multifamily being the two darling property types for owners and investors — many markets have become weaker. A recent Cushman & Wakefield study found that industrial had shown signs of slowing down in the fourth quarter of 2022. Only five of 81 tracked markets posted double-digit quarterly increases, although some bright spots such as Charleston, Inland Empire, Phoenix, and Miami all recorded annual gains of 40% or higher. Coastal and port/population-proximate markets continued to see premium pricing.