As we look back at 2024, several key trends have shaped the industrial real estate market. Here’s a summary of what happened:
- Decline in New Supply: In Q3 2024 (most recent data available), industrial real estate completions fell to their lowest level since Q2 2021. This marked a significant slowdown in the construction of new industrial properties.
- Increased Demand: Despite the decrease in new supply, net absorption (shown as the dark-colored bars) increased for the second consecutive quarter. This indicates a steady rise in demand for industrial spaces, with businesses actively leasing available properties.
- Outlook Moving Forward: Looking ahead, we believe the combination of limited new supply and strong demand—driven by e-commerce growth and the ongoing US manufacturing and onshoring boom—suggests that industrial real estate prices are likely to remain stable or even increase in the coming years.
For RIAs eager to delve into the realm of real assets, we invite you to reach out to us today.
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