{"id":7682,"date":"2024-07-24T11:01:43","date_gmt":"2024-07-24T11:01:43","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=7682"},"modified":"2024-08-29T05:55:18","modified_gmt":"2024-08-29T05:55:18","slug":"us-industrial-market-outlook-july-2024","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/us-industrial-market-outlook-july-2024\/","title":{"rendered":"U.S. Industrial Market Outlook \u2013 July 2024"},"content":{"rendered":"\n<p class=\"has-normal-font-size\">Read the latest Yardi Matrix <strong><a href=\"\/blog\/us-industrial-market-outlook\/\">Industrial Market Report<\/a><\/strong>.<\/p>\n\n\n<hr \/>\n<p><em>A total of 561.2 million square feet was in planning stages as of June, driven by manufacturing, data centers and the shift to e-commerce and omnichannel retail, according to the latest Yardi Matrix national industrial market outlook.<\/em><\/p>\n<h2>Report Highlights<\/h2>\n<ul>\n<li>\n<ul>\n<li>National in-place rents for industrial space averaged at $8.04 per square foot at the end of June, a 7.5 percent increase from June 2023.<\/li>\n<\/ul>\n<ul>\n<li>Nationwide industrial vacancy recorded <a href=\"\/blog\/us-industrial-market-outlook-june-2024\/\" rel=\"\"><strong>a 50-basis-point uptick<\/strong><\/a> from the previous month and averaged 6.1 percent at the end of June.<\/li>\n<li>Total industrial transaction volume amounted to $25.1 billion in the first half of 2024.<\/li>\n<li>The under-construction pipeline featured 365.7 million square feet of industrial space as of June.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Industrial vacancy on the upswing<\/h2>\n<p>In June, the national average for industrial space rents reached $8.04 per square foot, marking a four-cent increase from May and a 7.5 percent rise over the past year, according to Yardi Matrix. The Inland Empire saw the highest rent growth at 12.5 percent, followed by Los Angeles (12 percent), Miami (10.8 percent) and New Jersey (9.6 percent).<\/p>\n<p><iframe id=\"datawrapper-chart-LzSC8\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Under-construction industrial pipeline\" src=\"https:\/\/datawrapper.dwcdn.net\/LzSC8\/1\/\" height=\"423\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[\"datawrapper-height\"][t]+\"px\";e[r].style.height=i}}}))}();\n<\/script><\/p>\n<p>Conversely, the Midwest experienced the lowest rent increases, with Kansas City at 2.5 percent, St. Louis at 3.4 percent, Detroit at 3.6 percent and Chicago at 4 percent. The Midwest's ability to quickly adjust new supply to meet demand, unhampered by port market constraints, helps prevent the significant rent hikes seen on the coasts.<\/p>\n<p>National industrial vacancy stood at 6.1 percent in June, up 50 basis points from the previous month. Vacancy rates keep rising due to slowing demand and an unprecedented influx of new supply entering the market. Vacancy was lowest in Columbus (3.7 percent), Charlotte (3.8 percent), Kansas City, Mo. (4.0 percent) and Nashville, Tenn. (4.2 percent).<\/p>\n<h2>Investment milestone surpasses $1 billion mark in 5 markets<\/h2>\n<p>The development pipeline for industrial space is set to expand again, though not at the historic levels seen recently. As of the end of June, the national under-construction pipeline featured 365.7 million square feet, representing 1.9 percent of the total industrial stock, according to Yardi Matrix. An additional 561.2 million square feet are in the planning stages, spurred by demand for manufacturing facilities, data centers and the growth in e-commerce and omnichannel retail.<\/p>\n<p><iframe id=\"datawrapper-chart-rBN3y\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Under-construction industrial pipeline (as percentage of stock)\" src=\"https:\/\/datawrapper.dwcdn.net\/rBN3y\/1\/\" height=\"450\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Table\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[\"datawrapper-height\"][t]+\"px\";e[r].style.height=i}}}))}();\n<\/script><\/p>\n<p>On a percentage basis, the largest pipelines were in Phoenix (9.8 percent with 39 million square feet), Kansas City, Mo. (4.6 percent with 13.2 million square feet), Memphis, Tenn. (3.4 percent with 10 million square feet), Columbus (3.2 percent with 9.9 million square feet), Denver (3.0 percent with 8.2 million square feet) and Charlotte, N.C. (3.3 percent with 10.5 million square feet).<\/p>\n<p>Additionally, industrial property sales in the first half of the year totaled $25.1 billion, with an average transaction price of $139 per square foot. Sales activity was concentrated in the Bay Area ($2.3 billion), Dallas-Fort Worth ($2 billion), Los Angeles ($1.6 billion), Chicago ($1.3 billion) and New Jersey ($1 billion).<\/p>\n<p>Read the full Yardi Matrix Industrial Market Outlook: <strong><a href=\"\/publications\/download\/File\/5926-MatrixIndustrialReport-July2024\" rel=\"\">July 2024<\/a><\/strong>.<\/p>","protected":false},"excerpt":{"rendered":"<p>A total of 561.2 million square feet was in planning stages as of June, driven by manufacturing, data centers and the shift to e-commerce and omnichannel retail, according to the latest Yardi Matrix national industrial market outlook. Report Highlights National in-place rents for industrial space averaged at $8.04 per square foot at the end of [&hellip;]<\/p>\n","protected":false},"author":753,"featured_media":7641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[216,4],"tags":[336],"class_list":["post-7682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-market","category-real-estate-trends","tag-industrial-real-estate-outlook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S. Industrial Market Outlook \u2013 July 2024 - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"Industrial supply has slowed following years of record-level new development. 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