Updates and projections for commercial real estate’s hottest sector were discussed at the recently held NAIOP I.CON East industrial real estate conference, with more than 1,200 leaders attending from around North America.
It is expected the US will see a ‘meaningful’ downturn within the next 12 to 18 months. Consequently, a decline in the rate of warehouse construction is forecasted in the coming months. A significant decrease is expected in 2H 2023 and 1H 2024.
The continued demand for industrial space is keeping market fundamentals healthy across the U.S. The national average rent for in-place leases stood at $7.12 per square foot in February, growing 6.9% over year-ago figures.
All through the pandemic, industrial properties have been among the most desired by commercial real estate investors. But in the current market environment, are industrial assets holding up just as well? Following another bump in interest rates and continuing economic uncertainty, overall industrial deal volume in the U.S. fell 18 percent year-over-year in the third
Industrial real estate has been the standout sector in real estate for close to a decade, and the pandemic only further entrenched its position. While other sectors of the economy ground to a virtual halt, consumers’ accelerated shift toward e-commerce made industrial one of the few assets to benefit from lockdowns and social distancing.