Industrial leases signed in the last 12 months reached a national average of $9.01 per square foot, $1.88 more than in-place contracts.
Amid economic uncertainties and vacancy woes, the sector is expected to record one of the smallest sales volumes since the Great Recession.
While industrial deliveries hit a new high in 2022, supply is still behind demand, and 2023 is set to be another robust year for development.
Higher interest rates will likely hamper new supply as well as sales activity in 2023, while tenants’ flight-to-quality expected to persist.
More than 742 million square feet of industrial space was under construction at the end of November as demand continues to outstrip supply.
The average listing rate for office space stood at $38.06 in November, while vacancies rested at 16.2% across the top 50 U.S. office markets.
National industrial in-place rents averaged $6.95 per square foot, up 5.8% year-over-year as demand remains strong
The average listing rate for office space stood at $37.94 in October, while vacancies rested at 16.3% across the top 50 U.S. office markets.
Industrial tenants continue to pay increasing lease rates, with new contracts $1.38/sq .ft higher than in-place rents.
The average listing rate for office space stood at $35.67 in September, while vacancies rested at 16.6% across the top 50 U.S. office markets.
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